Cowboy Chicken Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Cowboy Chicken is a fast-casual franchise known for wood-fired rotisserie chicken, enchiladas, and homestyle sides. Franchisees run the restaurants, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Cowboy Chicken franchise requires a total initial investment of $582K – $1.4M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.8M[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $582K – $1.4M
- 82nd pct Service Resta…
- Avg gross sales
- $1.8M
- Incl. company outlets29th pct Service Resta…
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 18
- 48th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · 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 $582K – $1.4M including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.8M/year (median $1.7M) (includes company-owned outlets).
- RISKVerdict A (Strongest tier), verdict score 80/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Cowboy Chicken Franchising, LP
- Parent company
- Cowboy Chicken Holdings LLC
- Predecessor
- Cowboy Chicken Enterprises, LP; Cowboy Chicken Licensing Corp.
- Prior franchisor entity
- CEO title
- President, CEO, and Director
- D. Sean Kennedy
- Incorporated in
- TX
- HQ
- 5995 Summerside Drive, #797603, Dallas, Texas 75379
- Auditor
- HM&M (Huselton, Morgan and Maultsby)
- Audited financials
- Franchisor revenue
- $2.0M
- vs $1.6M prior year
Overview
About
- CEO
- D. Sean Kennedy
- Headquarters
- TX
- Founded
- 2007
- FDD year
- 2024
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 52% above the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $40K | $60K |
| Equipment, build-out, other | $507K | $1.3M |
| Total initial investment | $582K | $1.4M |
Source: Cowboy Chicken 2024 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
- $582K – $1.4M
- Bottom third — review vs category
- Liquid capital req'd
- $40K – $60K
- Bottom third — review vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $250 |
| Training fee | $8K |
| Transfer fee | $18K |
| Renewal fee | $18K |
| Inventory (initial) | $22K – $29K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 52% above the quick-service restaurants norm.
Includes company-owned outlets
Source: FDD 2024 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$275K
15.0% margin
Unlevered ROIC
26%
EBITDA / total invested capital
Payback
3.8 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Cowboy Chicken unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
26%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Cowboy Chicken units return on equity?
Equity IRR · 5-yr
34.7%
4.43× MOIC
Year-1 DSCR
2.35×
EBITDA ÷ debt service
Equity required
$5.3M
on $14.7M purchase
Total debt
$9.4M
SBA $5.0M + senior + seller note
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: 2024 FDD
Financial Performance
Includes company-owned outlets
- Avg gross sales
- $1.8M
- Per unit, per year
- Median gross sales
- $1.7M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 10
- vs category median 20
- Range (low → high)
- $1.2M→$2.9M
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.8M/year in gross sales. Revenue-to-investment ratio: 1.8x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 7.0% (near the Quick-Service Restaurants average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 10.0% CAGR over 3 years across 18 units — operators are staying and new ones are joining.
Multi-unit rate
Only 7% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Quick-Service Restaurants averages
How Cowboy Chicken Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 18
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 61%
- vs corporate-owned
- Multi-unit owners
- 6.7%
- Net growth (3-yr)
- +10.0%
- Net unit change over 3 years
- 3-yr CAGR
- +10.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 1
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $4.7M
- Median loan
- $600K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (5 loans) — rate not shown below 10
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
- 5
- 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
Cowboy Chicken presents meaningful caution due to lack of profitability disclosure, small unit count, and franchisor financial concerns, despite reasonable unit growth and protected territory.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · HM&M (Huselton, Morgan and Maultsby)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 80 / 100 verdict
- 01MEDNet income not disclosed in FDD — unable to validate profitability claims or ROI timeline
- 02MEDOnly 18 units systemwide with modest 10% YoY growth suggests limited scale and market validation
- 03HIGHGoing Concern status is False — indicates potential financial or operational stress at franchisor level
- 04MINORAverage revenue of $2.01M is solid but insufficient to offset concerns without corresponding margin data
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Dallas, Texas |
| Jury trial waiver | No |
| Governing law | TX |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 4 hrs
- On-the-job training
- 311 hrs
- Training location
- Certified Company-owned training Store in Dallas, Texas
- Ongoing training
- Required
- Field support
- 4 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- NCR Radiant Aloha QS Touchscreen System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR Radiant Aloha QS Touchscreen System
Item 20 · call current owners
Franchisee Contacts
10 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Cowboy Chicken · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cowboy Chicken franchise?
The total investment to open a Cowboy Chicken franchise ranges from $582K – $1.4M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cowboy Chicken franchise owners earn?
According to Item 19 of the Cowboy Chicken FDD, the average gross sales per unit is $1.8M. The median is $1.7M. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Cowboy Chicken 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 Cowboy Chicken FDD and qualifies whose outlets they describe.
What is Cowboy Chicken's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Cowboy Chicken (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 Cowboy Chicken franchise locations are there?
As of their most recent FDD filing, Cowboy Chicken has 18 total units in the United States, including 11 franchised units and 7 company-owned units. 1 new units were opened in the latest reporting year.
Is Cowboy Chicken a good franchise to buy?
FranchiseVerdict rates Cowboy Chicken as a A-grade franchise with a verdict score of 80 out of 100 (higher is better), 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?
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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.