Chaps Pit Beef
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.
- Rated MODERATE with a risk score of 67/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Chaps Pit Beef unit return on the cash you put in?
Unlevered ROIC · per unit
10%
Below typical band (30–60%)
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.
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 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 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.
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.
Score breakdown · what drove the 67 / 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
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Chaps Pit Beef · FDD (2023) PDF