Brown's Chicken
Bottom line
- Total investment $366K – $2.7M including a $25K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Brown's Chicken unit return on the cash you put in?
Unlevered ROIC · per unit
6%
Below typical band (30–60%)
Overview
About
Brown's Chicken franchisees operate quick-service chicken restaurants, managing daily food preparation, customer service, inventory, and staff operations. Franchisees are responsible for generating revenue through dine-in, carry-out, and delivery channels while maintaining brand standards and paying royalties.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Brown's Chicken presents CAUTION-to-HIGH RISK profile due to going concern status, absence of financial disclosure, recent multi-party litigation, minimal unit count, and opaque unit economics.
Score breakdown · what drove the 65 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates potential solvency or operational viability issues at franchisor level
- 02MEDNo Item 19 financial disclosure (Avg Revenue/Net Income not disclosed) — impossible to validate ROI claims or unit economics
- 03HIGHFour concluded litigations in 2016 involving breach of franchise agreements, non-payment disputes, and trademark issues — suggests systemic franchisor-franchisee conflict
- 04MINOROnly 21 units with unknown growth trajectory — unusually small system raises sustainability questions
- 05MINORWide investment range ($366K–$2.7M) with no corresponding revenue data — unclear what drives cost variance or profit potential
- 06MED5% royalty + undisclosed advertising fees on unknown revenue base — unable to model true cash flow burden
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
4 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Brown's Chicken · FDD (2024) PDF