Chili’s Grill & Bar Franchise Cost, Revenue & Review 2026
- Investment
- $4.2M – $6.5M
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (1)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Chili's Grill & Bar is a casual-dining franchise serving American and Tex-Mex favorites, burgers, and ribs, with a full bar. Franchisees operate full-service restaurants managing kitchen, bar, and takeout and delivery to a standardized template.
FranchiseVerdict summary · 2026
A Chili’s Grill & Bar franchise requires a total initial investment of $4.2M – $6.5M, including a $60K franchise fee and an ongoing 1.3% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $4.2M – $6.5M
- 40th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 1.3%
- 0th pct Service Resta…
- Units
- 1,230
- 37th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $4.2M – $6.5M including a $60K franchise fee, 1.3% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 45/100 (higher is better).
- GROWTHNegative: net -1 franchised outlets in the latest year (1 opened, 2 closed) (Item 20).
- DECLINESystem contracting at -41.5% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Brinker International Payroll Company, L.P.
- Parent company
- Brinker International, Inc.
- FDD Item 1, page 9 of the 2023 FDD
- Predecessor
- Brinker International, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and President
- Kevin Hochman
- Incorporated in
- DE
- HQ
- 3000 Olympus Boulevard, Dallas, TX 75019
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $4.1B
- vs $3.8B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Kevin Hochman
- Headquarters
- TX
- Founded
- 1975
- FDD year
- 2023
- States available
- 25
Can you afford it, and what does the money buy?
Entry cost runs 692% above the typical full-service restaurants franchise.
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $525K | $725K |
| Equipment, build-out, other | $3.6M | $5.7M |
| Total initial investment | $4.2M | $6.5M |
Source: Chili’s Grill & Bar 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
- $4.2M – $6.5M
- Top 40% of category vs category
- Liquid capital req'd
- $525K – $725K
- Top 40% of category vs category
- Franchise fee
- $60K – $60K
- Top 40% of category vs category
- Royalty
- 1.3%
- typical 6–8%
- Ad fund
- 2.2%
- typical 3–5%
- Total fee load
- 6.7%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 1.3% of gross sales |
| Marketing / ad fund | 2.2% of gross sales |
| Technology fee | $0 |
| Training fee | $65K |
| Transfer fee | $25K |
| Renewal fee | $60K |
| Inventory (initial) | $75K – $100K |
| Total fee load | 6.7% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Chili’s Grill & Bar makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Chili’s Grill & Bar unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2023 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.7% (near the Full-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -41.5% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants medians
How Chili’s Grill & Bar Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,230
- Opened
- 1
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.2%
- Company-owned
- 1,130
- Corporate units in the system
- % franchised
- 8%
- vs corporate-owned
- Net growth (3-yr)
- -41.5%
- Net unit change over 3 years
- 3-yr CAGR
- -41.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Transfer rate
- 0.1%
- Owners selling to other franchisees
- Continuity rate
- 98.0%
- Units that stayed open
- Ceased ops
- 0.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 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.
Where the owners are · Item 20 owner list
99 current owners across 26 states.
- KS 13
- AL 10
- GA 10
- SC 10
- MO 7
- OH 6
- TX 5
- HI 4
- IL 4
- NE 4
- OK 4
- WY 3
- +14 more states
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $416K
- Median loan
- $416K
- average
- Charge-off rate
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Chili's presents moderate-to-high risk: declining unit base, unresolved multi-plaintiff data breach litigation, zero financial transparency (no Item 19), unprotected territory, and high capital requirements with no disclosed profit benchmarks.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
One consolidated putative class action (In re: Brinker Data Incident Litigation) arising from a 2018 cybersecurity incident at company-owned Chili's restaurants involving customer payment card information. Plaintiffs seek monetary damages exceeding $5 million. Awaiting Eleventh Circuit ruling on class certification.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 attaches the audited CONSOLIDATED financial statements of the franchisor's parent/predecessor, Brinker International, Inc. ("BII") and subsidiaries, as of June 28, 2023, June 29, 2022 and June 30, 2021 (auditor KPMG LLP, Dallas, TX; report dated Aug 23, 2023; KPMG has served as auditor since 1984). The franchisor itself is Brinker International Payroll Company, L.P. The numeric balance-sheet and income-statement tables (financial report F-pages, Exhibit A) were not captured in the available OCR text, so no dollar figures could be extracted; only the audit-report narrative is present.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 45 / 100 verdict
- 01MINORDeclining unit count (-1.0% YoY) suggests system contraction and potential market saturation or operational challenges
- 02HIGHMajor data breach litigation ('In re: Brinker Data Incident Litigation') with four consolidated class actions creates reputational and financial liability exposure for franchisees
- 03MEDNo average revenue or net income disclosure (Item 19 missing) prevents prospective franchisees from validating ROI assumptions on $1.8M–$6.5M investment
- 04HIGHHigh investment range ($1.8M–$6.5M) with low franchise fee ($60K) suggests capital-intensive operations and thin margins relative to system-wide litigation risk
- 05MINORUnprotected territory exposes franchisees to direct multi-unit competition and encroachment by corporate or other franchisees
- 06MINOR20-year term locks franchisees into long commitment during period of brand contraction and data breach fallout
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.7% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Dallas, Texas |
| Jury trial waiver | Yes |
| Governing law | TX |
| Litigation count | 1 |
View Item 3 litigation summary
One consolidated putative class action (In re: Brinker Data Incident Litigation) arising from a 2018 cybersecurity incident at company-owned Chili's restaurants involving customer payment card information. Plaintiffs seek monetary damages exceeding $5 million. Awaiting Eleventh Circuit ruling on class certification.
Items 10, 11
Training & Operations
- Classroom training
- 147 hrs
- On-the-job training
- 324 hrs
- Training location
- Certified Training Restaurants (CTRs) throughout the U.S.
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor must approve
- Franchisor financing
- Not offered
- Item 10
- POS system
- Aloha POS (NCR) with QSR kitchen display system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Aloha POS (NCR) with QSR kitchen display system
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Chili’s Grill & Bar franchise?
The total investment to open a Chili’s Grill & Bar franchise ranges from $4.2M – $6.5M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Chili’s Grill & Bar franchise owners earn?
Chili’s Grill & Bar makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Chili’s Grill & Bar?
Chili’s Grill & Bar is franchised by Brinker International Payroll Company, L.P.. Its parent company is Brinker International, Inc.. Source: FDD Item 1, 2023 filing.
What is Item 19 in the Chili’s Grill & Bar FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Chili’s Grill & Bar FDD and qualifies whose outlets they describe.
What is Chili’s Grill & Bar's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Chili’s Grill & Bar (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 Chili’s Grill & Bar franchise locations are there?
As of their most recent FDD filing, Chili’s Grill & Bar has 1,230 total units in the United States, including 100 franchised units and 1,130 company-owned units. 1 new units were opened in the latest reporting year.
Is Chili’s Grill & Bar a good franchise to buy?
FranchiseVerdict rates Chili’s Grill & Bar as a C-grade franchise with a verdict score of 45 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.