Buffalo’s Cafe
Bottom line
- Total investment $857K – $2.9M including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.4M/year (median $2.4M).
- Rated CAUTION with a risk score of 72/100.
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 Buffalo’s Cafe unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Buffalo’s Cafe units return on equity?
Equity IRR · 5-yr
30.3%
3.76× MOIC
Year-1 DSCR
2.66×
EBITDA ÷ debt service
Equity required
$8.2M
on $18.8M purchase
Total debt
$10.6M
SBA $5.0M + senior + seller note
Overview
About
Buffalo's Cafe franchisees operate casual dining establishments focused on buffalo-style chicken wings and related casual fare. Day-to-day operations include managing kitchen production, food quality control, staff scheduling, inventory management, and customer service across a dine-in or hybrid format. Franchisees are responsible for local marketing, P&L management, and compliance with brand standards while paying 6% royalties on net sales to FAT Brands.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Buffalo's Cafe operates within a contracting franchise system under a parent company facing securities litigation and disclosure violations, with no disclosed net income data and concerning governance issues that create substantial operational and financial risk.
Score breakdown · what drove the 72 / 100 rating
- 01MEDUnit count declined 7.7% YoY (12 units total) indicating system contraction and weak franchisee retention
- 02MINORParent company (FAT Brands) facing multiple securities class actions for alleged false statements and misrepresentation—direct credibility and disclosure risk
- 03MEDNet income not disclosed in FDD Item 19—prevents ROI validation and suggests either poor performance or deliberate opacity
- 04HIGHHigh litigation exposure: securities fraud, registration violations in Virginia, breach of contract, and misrepresentation claims regarding international development
- 05MINORInvestment range of $857K–$2.9M is substantial with 6% royalty; declining unit count raises franchise viability questions
- 06HIGHGoing Concern status is FALSE—suggests potential financial instability at parent company level affecting franchisee support
- 07MINORMultiple settlement violations and international development disputes indicate governance and contract enforcement problems
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
66 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Buffalo’s Cafe · FDD (2025) PDF