Dickey's Barbecue PitFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Dickey's Barbecue Pit franchise requires a total initial investment of $210K – $529K, including a $20K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 32.0% charge-off rate across 402 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $210K – $529K
- 11th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 386
- 47th pct Service Resta…
- SBA default
- 32.0%
- system-wide median varies by category
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
32.0% of SBA loans charged off across 402 loans, above the 16% franchise average.
Franchising since 1994. Systems this mature have refined operations and brand recognition.
The system contracted 18% year-over-year. Investigate why units are closing.
11 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $210K – $529K including a $20K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100. SBA loan charge-off rate of 32.0% across 402 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Dickey’s Barbecue Restaurants, Inc.
- Parent company
- Dickey’s Capital Group, Inc.
- Ultimate parent
- Dickey's Capital Group, Inc.
- CEO title
- Chief Executive Officer, President, and Secretary
- Laura Rea Dickey
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- TX
- HQ
- 850 Central Parkway East, Suite 140, Plano, Texas 75074
- Auditor
- Carr, Riggs & Ingram, LLC
- Audited financials
- Franchisor revenue
- $37.4M
- vs $32.3M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate casual fast-casual barbecue restaurants serving smoked meats, sides, and beverages. Day-to-day operations include food preparation using proprietary smoking techniques, counter service or limited table service, inventory management, staff hiring/training, and local marketing. Most locations operate as standalone units or small multi-unit operations with 15-40 employees.
- CEO
- Laura Rea Dickey
- Headquarters
- TX
- Founded
- 1994
- FDD year
- 2025
- States available
- 40
FDD Item 7 · 2025 filing · 28 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $15K | $20K | |
| Architectural Plans | $8K | $25K | |
| Permits | $1K | $15K | |
| Leasehold Improvements | $100K | $350K | |
| Furniture, Fixtures, and Equipment | $70K | $160K | |
| Graphics | $1K | $6K | |
| Digital Menu Boards | $4K | $5K | |
| Signage | $8K | $20K | |
| Point of Sale Computer and Technology in A Box | $6K | $8K | |
| Tenant Improvements | $20K | $92K | |
| Lease Deposits | $0 | $15K | |
| Training | $2K | $4K | |
| ServSafe Training | $0 | $185 | |
| BU Enrollment Fee | $30 | $30 | |
| Opening Inventory and Services | $5K | $8K | |
| Insurance | $0 | $12K | |
| Restaurant Opening Fee | $375 | $12K | |
| Professional Fees | $2K | $3K | |
| Closing and Finance Costs | $0 | $15K | |
| Smokestack Sales Reporting System Software Fee | $200 | $200 | |
| Total initial investment | $270K | $894K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $210K – $529K
- Better than avg vs category
- Liquid capital req'd
- $15K – $30K
- Better than avg vs category
- Franchise fee
- $15K – $20K
- Better than avg vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $149 |
| Transfer fee | $15K |
| Renewal fee | $15K |
| Total fee load | 9.0% 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 Dickey's Barbecue Pit Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 386
- Opened
- 20
- Last reporting year
- Closed
- 102
- Turnover rate
- 26.4%
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- -17.9%
- Net unit change last year
- 3-yr CAGR
- -20.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 106
- Transfer rate
- 27.5%
- Owners selling to other franchisees
- Continuity rate
- 82.1%
- Units that stayed open
- Ceased ops
- 21.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 40 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.
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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 402
- Loan volume
- $139.3M
- Median loan
- $305K
- 50th percentile
- Charge-off rate
- 32.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 65.7%
- 5-yr charge-off
- 32.0%
- Loans approved 2021+
- Active lenders
- 128
- Defaults
- 93
Vintage analysis
Dickey's Barbecue Pit charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Dickey's Barbecue Pit's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 15-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 32.0% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Dickey's presents HIGH RISK due to significant unit contraction (-17.9% YoY), multiple active franchisee litigation cases alleging fraud/breach, complete absence of profitability disclosure, and a data security incident—collectively suggesting a deteriorating franchise system with deteriorating franchisor-franchisee relations.
Litigation (Item 3)
Three cases involving franchisees: Covington seeks return of funds and rescission of franchise agreement; Jaiswal alleges price fixing and breach of contract (moved to arbitration); Bruno case details incomplete.
Bankruptcy (Item 4)
Disclosed in last 7 years
Audited financials (Item 21)
Yes · Carr, Riggs & Ingram, LLC
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: Yes
Score breakdown · what drove the 100 / 100 rating
- 01MEDUnit count declined 17.9% year-over-year (386 units), indicating system contraction and potential franchisee struggle
- 02HIGHMultiple franchisee litigation cases alleging breach of contract, fraud, and misrepresentation suggest systemic franchisor-franchisee relationship problems
- 03MINORNo average revenue or net income disclosure (Item 19) prevents ability to assess actual franchisee profitability and ROI
- 04MINORData security class-action settlement indicates operational/compliance vulnerabilities and potential reputational damage
- 05MINOR20-year term is unusually long and locks franchisees into relationship with declining system
- 06MED6% royalty on undisclosed revenue base creates uncertainty about true cost structure and break-even point
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 | 10 years |
| Territory type | Radius |
| Protected territory | Yes |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 30 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 11 |
View Item 3 litigation summary
Three cases involving franchisees: Covington seeks return of funds and rescission of franchise agreement; Jaiswal alleges price fixing and breach of contract (moved to arbitration); Bruno case details incomplete.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 90 hrs
- Training location
- On-site and corporate
- POS system
- Spark Point-of-Sale system with the Smokestack information management system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Spark Point-of-Sale system with the Smokestack information management system
Item 20 · call current owners
Franchisee Contacts
331 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Dickey's Barbecue Pit · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Dickey's Barbecue Pit franchise?
The total investment to open a Dickey's Barbecue Pit franchise ranges from $210K – $529K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Dickey's Barbecue Pit franchise owners earn?
Dickey's Barbecue Pit 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 Dickey's Barbecue Pit's franchise failure rate?
Based on SBA 7(a) loan data, Dickey's Barbecue Pit has a charge-off rate of 32.0% across 402 loans, meaning 32.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Dickey's Barbecue Pit franchise locations are there?
As of their most recent FDD filing, Dickey's Barbecue Pit has 386 total units in the United States, including 377 franchised units and 9 company-owned units. 20 new units were opened in the latest reporting year.
Is Dickey's Barbecue Pit a good franchise to buy?
FranchiseVerdict rates Dickey's Barbecue Pit as a F-grade franchise with a risk score of 100 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.