Chili’s Grill & BarFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Chili’s Grill & Bar franchise requires a total initial investment of $1.8M – $6.5M, including a $60K franchise fee and an ongoing 2.2% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $1.8M – $6.5M
- 47th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 2.2%
- 1st pct Service Resta…
- Units
- 1,230
- 48th pct Service Resta…
- SBA default
- N/A
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
Franchising since 1984. Systems this mature have refined operations and brand recognition.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $1.8M – $6.5M including a $60K franchise fee, 2.2% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 52/100.
- System 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
- Legal entity
- Brinker International Payroll Company, L.P.
- Parent company
- Brinker International, Inc.
- CEO title
- Chief Executive Officer and President of BII and President of Chili's Grill & Bar
- Kevin Hochman
- Incorporated in
- DE
- HQ
- 3000 Olympus Boulevard, Dallas, TX 75019
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $3.8B
- vs $4.1B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Chili's franchisees operate casual-dining restaurants serving American grill fare (burgers, ribs, Tex-Mex), managing kitchen, front-of-house, and delivery/takeout operations. Day-to-day responsibilities include staff scheduling, food cost control, customer service, menu compliance, and local marketing within a standardized brand template. Franchisees also manage the financial and reputational risk of operating under a parent company currently defending multi-state data breach litigation.
- CEO
- Kevin Hochman
- Headquarters
- TX
- Founded
- 1975
- FDD year
- 2023
- States available
- 25
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $20K | $30K |
| Equipment, build-out, other | $1.7M | $6.4M |
| Total initial investment | $1.8M | $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
- $1.8M – $6.5M
- Near category avg vs category
- Liquid capital req'd
- $20K – $30K
- Better than avg vs category
- Franchise fee
- $40K – $60K
- Near category avg vs category
- Royalty
- 2.2%
- Gross Sales · typical 6–8%
- Ad fund
- 1.3%
- typical 3–5%
- Total fee load
- 6.7%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 2.2% of gross sales |
| Marketing / ad fund | 1.3% of gross sales |
| Technology fee | $2 |
| Training fee | $4K |
| Transfer fee | $5K |
| Renewal fee | $60K |
| Total fee load | 6.7% 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 Chili’s Grill & Bar Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,230
- Opened
- 1
- Last reporting year
- Closed
- 2
- Turnover rate
- 0.2%
- Company-owned
- 1,130
- Corporate units in the system
- % franchised
- 8%
- vs corporate-owned
- Net growth (yr3)
- -1.0%
- Net unit change last year
- 3-yr CAGR
- -41.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
- 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 · 28 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 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Chili’s Grill & Bar's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
Parent company BII (Brinker International, Inc.) named as defendant in four putative class actions consolidated as 'In re: Brinker Data Incident Litigation' stemming from cybersecurity incident at Chili's Restaurants involving customer payment card information. Original cases: (1) GreenCooper v. BII (M.D. Florida, 3:18-cv-00686-TJC-MCR, filed 5/24/2018); (2) Steinmetz v. BII (D. Nevada, 2:18-cv-00981-JAD-PAL, filed 5/30/2018); (3) Franklin v. BII (C.D. California, 2:18-cv-05323, filed 6/14/2018); (4) Alamillo v. BII (C.D. California, 2:18-cv-05684, filed 6/27/2017). Plaintiffs assert violations of state consumer protection laws (Florida, Nevada, Texas, Virginia, California) and seek damages exceeding $5.0 million plus injunctive relief, declaratory relief, and attorney's fees. Nevada case dismissed and joined Florida case; California cases transferred to Florida. On 4/14/2021, court certified class on negligence claims and separate class on California Unfair Competition Law claims. BII obtained immediate discretionary review by Eleventh Circuit Court of Appeals; district court proceedings stayed. Oral argument held 6/8/2022; ruling pending.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 52 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | Specific location |
| Protected territory | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 4 |
View Item 3 litigation summary
Parent company BII (Brinker International, Inc.) named as defendant in four putative class actions consolidated as 'In re: Brinker Data Incident Litigation' stemming from cybersecurity incident at Chili's Restaurants involving customer payment card information. Original cases: (1) GreenCooper v. BII (M.D. Florida, 3:18-cv-00686-TJC-MCR, filed 5/24/2018); (2) Steinmetz v. BII (D. Nevada, 2:18-cv-00981-JAD-PAL, filed 5/30/2018); (3) Franklin v. BII (C.D. California, 2:18-cv-05323, filed 6/14/2018); (4) Alamillo v. BII (C.D. California, 2:18-cv-05684, filed 6/27/2017). Plaintiffs assert violations of state consumer protection laws (Florida, Nevada, Texas, Virginia, California) and seek damages exceeding $5.0 million plus injunctive relief, declaratory relief, and attorney's fees. Nevada case dismissed and joined Florida case; California cases transferred to Florida. On 4/14/2021, court certified class on negligence claims and separate class on California Unfair Competition Law claims. BII obtained immediate discretionary review by Eleventh Circuit Court of Appeals; district court proceedings stayed. Oral argument held 6/8/2022; ruling pending.
Items 10, 11
Training & Operations
- Classroom training
- 147 hrs
- On-the-job training
- 324 hrs
- Training location
- On-site and classroom
- Time to open
- 12 mo
- From signing to launch
- POS system
- Aloha POS system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Aloha POS system
Item 20 · call current owners
Franchisee Contacts
102 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Chili’s Grill & Bar · FDD (2023) PDF
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 $1.8M – $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 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 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 A-grade franchise with a risk score of 52 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.
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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.