Bottom line
- Total investment $169K – $826K including a $125K franchise fee, 50.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 6 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 Daddy’s Chicken Shack unit return on the cash you put in?
Unlevered ROIC · per unit
-42%
Negative
Overview
About
Franchisees operate quick-service chicken restaurants under the Daddy's Chicken Shack brand, managing daily front-of-house and back-of-house operations including food preparation, order fulfillment, inventory management, staffing, and customer service. Day-to-day responsibilities include managing labor costs, ensuring food quality standards, maintaining equipment, handling local marketing, and meeting corporate compliance and royalty obligations.
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 · 8 states 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.
8
states with franchisees (per FDD Item 12)
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
Early-stage QSR franchise with opaque financial performance, aggressive dual-layer royalties, minimal scale, and insufficient disclosure to assess risk-adjusted returns on a six-figure investment.
Score breakdown · what drove the 62 / 100 rating
- 01MINORNo average revenue or net income disclosure (Item 19) — inability to assess profitability and ROI on $168k-$826k investment
- 02MINORExtremely high royalty structure (50% of franchise fee + 50% of ongoing royalties) creates dual revenue extraction that may limit franchisee margins
- 03MEDOnly 15 units system-wide with 25% YoY growth — very small, early-stage franchise with limited operational track record and higher failure risk
- 04MINORWide investment range ($168k-$826k) suggests high variability in unit economics and unclear cost structure for franchisees
- 05MINOR$125,000 franchise fee is substantial for a 15-unit system with no proven profitability data to justify it
- 06MED10-year term is lengthy commitment with limited historical performance data to evaluate long-term viability
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
2 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Daddy’s Chicken Shack · FDD (2024) PDF