Chaps Pit BeefFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Chaps Pit Beef franchise requires a total initial investment of $335K – $1.8M, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $335K – $1.8M
- 22nd pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 6
- 15th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system contracted 25% year-over-year. Investigate why units are closing.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $335K – $1.8M including a $30K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- CHAPS PIT BEEF FRANCHISING LLC
- Incorporated in
- MD
- HQ
- 8 Patrick Way, Kingsville, MD 21087
- Auditor
- Frank Hajek & Associates, P.A.
- Audited financials
- Franchisor revenue
- $410K
- vs $227K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2023
- Status as of 2023; may have been resolved in a later filing we don't yet have.
Overview
About
Franchisees operate casual barbecue restaurants specializing in pit beef and smoked meats. Daily operations involve managing food preparation, inventory control, customer service, and staffing at a QSR/fast-casual establishment. Franchisees oversee both kitchen operations and front-of-house management while maintaining brand standards across a protected territory.
- CEO
- Donna Creager
- Headquarters
- MD
- Founded
- 2017
- FDD year
- 2023
- States available
- 2
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $135K | $164K |
| Equipment, build-out, other | $170K | $1.6M |
| Total initial investment | $335K | $1.8M |
Source: Chaps Pit Beef 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $335K – $1.8M
- Better than avg vs category
- Liquid capital req'd
- $135K – $164K
- Near category avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $3K |
| Renewal fee | $3K |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Chaps Pit Beef Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 67%
- vs corporate-owned
- Net growth (yr3)
- -25.0%
- Net unit change last year
- 3-yr CAGR
- -25.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $1.0M
- Median loan
- $272K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Chaps Pit Beef's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Chaps Pit Beef presents elevated risk due to severe unit contraction, complete financial transparency gaps, and insufficient scale to support a stable franchise system.
Audited financials (Item 21)
Yes · Frank Hajek & Associates, P.A.⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 100 / 100 rating
- 01MED25% unit decline YoY indicates significant system contraction and franchisee attrition
- 02MEDNo Item 19 financial performance data disclosed despite wide investment range ($335K-$1.8M) makes ROI impossible to validate
- 03MINORHigh royalty burden (6% of gross weekly sales) with no profitability benchmarks provided
- 04MINORWide investment range ($1.1M spread) suggests inconsistent unit economics or unclear cost structure
- 05MINOROnly 6 remaining units creates thin support infrastructure and raises sustainability concerns
- 06MEDNo disclosed average revenue or net income prevents proper due diligence and creates opacity risk
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 68 hrs
- On-the-job training
- 160 hrs
- POS system
- DBS (Delaware Business System)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: DBS (Delaware Business System)
Item 20 · call current owners
Franchisee Contacts
16 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Chaps Pit Beef · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Chaps Pit Beef franchise?
The total investment to open a Chaps Pit Beef franchise ranges from $335K – $1.8M, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Chaps Pit Beef franchise owners earn?
Chaps Pit Beef does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Chaps Pit Beef's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Chaps Pit Beef (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Chaps Pit Beef franchise locations are there?
As of their most recent FDD filing, Chaps Pit Beef has 6 total units in the United States, including 3 franchised units and 2 company-owned units.
Is Chaps Pit Beef a good franchise to buy?
FranchiseVerdict rates Chaps Pit Beef as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Chaps Pit Beef, you can request corrections or provide updated information.
Claim this brandOther Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.