Crazy Otto’s Diner
Bottom line
- Total investment $563K – $760K including a $25K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Crazy Otto’s Diner unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
Overview
About
Crazy Otto's Diner franchisees operate classic American diner establishments serving breakfast, lunch, and dinner with dine-in and outside vendor/catering revenue streams. Daily operations include food preparation, customer service, inventory management, and compliance with franchisor operational standards while remitting 4% of dine-in and 2% of outside vendor sales as royalties.
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 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Financially distressed franchisor with minimal system scale, no performance disclosure, and unclear path to profitability makes this a high-risk investment.
Score breakdown · what drove the 72 / 100 rating
- 01HIGHGoing Concern status indicates franchisor financial distress or operational uncertainty
- 02MINOROnly 5 units systemwide suggests minimal scale, market validation failure, or recent contraction
- 03MEDNo Item 19 (average unit revenue/profitability) disclosed — prevents ROI assessment on $563k-$760k investment
- 04MINORHigh investment-to-unit ratio ($112k-$152k per existing unit) with no financial performance data to justify spend
- 05MINORRoyalty structure (4% dine-in + 2% outside vendor) lacks transparency on actual cost burden without revenue disclosure
- 06MINOR5-year term is relatively short; typically indicates franchisor uncertainty or struggling brand repositioning
- 07MEDNo disclosed growth trajectory or expansion plans despite small unit count
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
5 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Crazy Otto’s Diner · FDD (2025) PDF