Dickey's Barbecue Pit Franchise Cost, Revenue & Review 2026
- Investment
- $438K – $529K
- Disclosed sales
- not disclosed
- SBA charge-off
- 32.0%
- on 402 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Dickey's Barbecue Pit is a fast-casual barbecue franchise serving slow-smoked meats, classic sides, and its signature big yellow cups. Franchisees run restaurants managing smoking, counter service, and staffing, standalone or multi-unit.
FranchiseVerdict summary · 2026
A Dickey's Barbecue Pit franchise requires a total initial investment of $438K – $529K, including a $15K – $20K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 32.0% charge-off rate across 402 loans[1]. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2024 filing · Data extracted: · Last cited check: · Staleness risk: high - figures are from a filing two or more years old
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $438K – $529K
- 69th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 386
- 87th pct Service Resta…
- SBA charge-off
- 32.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · 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 $438K – $529K including a $15K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict F (Weakest tier), verdict score 21/100 (higher is better). 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, 2010–2025).
- GROWTHNegative: net -82 franchised outlets in the latest year (20 opened, 102 closed); 19 signed but not yet open (Item 20).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Dickey's Barbecue Restaurants, Inc.
- Parent company
- Dickey's Capital Group, Inc.
- FDD Item 1, page 10 of the 2024 FDD
- CEO title
- Chief Executive Officer
- 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
Same owner · FDD Item 1, page 10
1 other brand on this site name Dickey's Capital Group, Inc. as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2024 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Laura Rea Dickey
- Headquarters
- TX
- Founded
- 1994
- FDD year
- 2024
- States available
- 40
Can you afford it, and what does the money buy?
Entry cost is about typical for a quick-service restaurants franchise (near the category median).
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown28 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee(1) | $20K | $20K | |
| Architectural Plans(2), (13) | $16K | $25K | |
| Permits(6), (13) | $1K | $15K | |
| Leasehold Improvements(3), (13) | $275K | $350K | |
| Furniture, Fixtures, and Equipment (4), (13) | $125K | $160K | |
| Graphics | $4K | $6K | |
| Digital Menu Boards | $4K | $5K | |
| Signage (5) | $12K | $20K | |
| Point of Sale Computer and Technology in A Box | $6K | $8K | |
| Tenant Improvements(25) | $-30K | $-92K | |
| Lease Deposits (13) (14) | $0 | $15K | |
| Training (15) | $2K | $4K | |
| ServSafe Training (16) (13) | $0 | $185 | |
| BU Enrollment Fee (17) (13) | $30 | $30 | |
| Opening Inventory and Services (8), (13) | $7K | $8K | |
| Insurance (7), (13) | $0 | $12K | |
| Restaurant Opening Fee(9), (13) | $375 | $12K | |
| Professional Fees(10), (13) | $2K | $2K | |
| Closing and Finance Costs(11), (13) | $0 | $15K | |
| Smokestack Sales Reporting System Software Fee (18) | $200 | $200 | |
| Total initial investment | $438K | $529K |
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
- $438K – $529K
- Bottom third — review vs category
- Liquid capital req'd
- $15K – $30K
- Top 40% of category vs category
- Franchise fee
- $15K – $20K
- Top 40% of category vs category
- Royalty
- 6.0%
- 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 net sales |
| Technology fee | $58 |
| Training fee | $5K |
| Transfer fee | $15K |
| Renewal fee | $15K |
| Inventory (initial) | $5K – $8K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Dickey's Barbecue Pit makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Dickey's Barbecue Pit unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -20.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 medians
How Dickey's Barbecue Pit Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 386
- Opened
- 20
- Last reporting year
- Closed
- 102
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 26.4%
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- -20.6%
- Net unit change over 3 years
- 3-yr CAGR
- -20.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 0
- Transferred
- 106
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 19
- 0.05 per open outlet · Item 20 Table 5
- Projected new
- 4
- Franchisor's next-year forecast
- 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.
Where the owners are · Item 20 owner list
329 current owners across 40 states; 2 former (terminated, transferred or not renewed) listed separately.
- TX 100
- CA 32
- CO 19
- AZ 17
- LA 12
- GA 11
- WA 11
- FL 10
- MS 10
- MI 9
- NM 7
- OH 7
- +28 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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%
- on 402 loans · 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)
- 68.0%
- 5-yr charge-off
- 32.0%
- Loans approved 2021+
- Active lenders
- 128
- Defaults
- 93
- Typical loan rate
- 6.6%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand above franchise avg ↑
- Jobs supported
- 4,126
- 5.0 per loan
- Lender concentration
- 11%
- top lender's share
Borrower mix: 73% went to startups / new businesses, 27% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Dickey's Barbecue Pit charge-off rate by loan vintage
Top lenders financing Dickey's Barbecue Pit franchisees
Showing 3 of 128 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Dickey's Barbecue Pit from SBA 7(a) FOIA data.
- Principal loss rate
- 16.9%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 6.56%
- Avg chargeoff amount
- $238K
- Lender concentration
- 11.0%
- Job velocity
- 5.0 per $100K
- Startup risk premium
- +22.0pp
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 4,126
Top SBA lendersTop lender holds 11% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Stearns Bank National Association | 26 | $7.4M | 32.0% |
| 2 | Luminate Bank | 24 | $12.3M | 33.3% |
| 3 | Byline Bank | 13 | $5.2M | 53.8% |
| 4 | Citizens Bank | 8 | $3.3M | 25.0% |
| 5 | Bank Five Nine | 7 | $1.3M | 14.3% |
| 6 | The Huntington National Bank | 7 | $1.5M | 0.0% |
| 7 | Dogwood State Bank | 7 | $2.5M | 0.0% |
| 8 | Community Bank of Mississippi | 6 | $1.4M | 0.0% |
| 9 | First Bank | 6 | $3.4M | 100.0% |
| 10 | U.S. Bank, National Association | 5 | $942K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 42 | 11 | 35.5% |
| CACalifornia | 32 | 12 | 57.1% |
| COColorado | 13 | 1 | 12.5% |
| FLFlorida | 13 | 6 | 54.5% |
| MIMichigan | 12 | 1 | 12.5% |
| AZArizona | 8 | 2 | 28.6% |
| TNTennessee | 8 | 2 | 40.0% |
| WAWashington | 8 | 2 | 33.3% |
| PAPennsylvania | 7 | 0 | 0.0% |
| WIWisconsin | 7 | 3 | 42.9% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 32.0% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 32.0% — 100% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Subject: the franchisor is a named party (defendant).
6 pending cases including franchisee claims for fraudulent inducement, breach of contract, RICO, and data security/consumer protection class actions; 5 concluded cases including a $2.35M data breach class settlement and a $500K franchise dispute settlement.
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 years)
Affiliates Stanford Sonoma Corp. and ORS.COM, Inc. filed Chapter 11 petitions on April 17, 2023. Both sold equipment to Dickey's franchisees. Joint reorganization plan was confirmed October 22, 2023, and substantially consummated by February 28, 2024.
Audited financials (Item 21)
Yes · Carr, Riggs & Ingram, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated statements of operations revenue figures were not present in the extracted FDD text (table values blank); only the balance sheet and cash flow statement contained numeric data. FY ending May 31, 2024. Royalty Fees are stated to represent 63% of the Operating Income revenue line.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- 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 21 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 9.0% 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 | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not 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 |
| Arbitration location | Texas |
| Jury trial waiver | Yes |
| Governing law | TX |
| Litigation count | 12 |
View Item 3 litigation summary
6 pending cases including franchisee claims for fraudulent inducement, breach of contract, RICO, and data security/consumer protection class actions; 5 concluded cases including a $2.35M data breach class settlement and a $500K franchise dispute settlement.
Items 10, 11
Training & Operations
- Classroom training
- 43 hrs
- On-the-job training
- 75 hrs
- Training location
- Dickey's corporate training center (Plano, TX) or designated Restaurant location
- Ongoing training
- Required
- Time to open
- 10 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Spark POS (TIBS - Technology in a Box)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Spark POS (TIBS - Technology in a Box)
Item 20 · call current owners
Franchisee Contacts
331 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 $438K – $529K, with an initial franchise fee of $15K. 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Dickey's Barbecue Pit?
Dickey's Barbecue Pit is franchised by Dickey's Barbecue Restaurants, Inc.. Its parent company is Dickey's Capital Group, Inc.. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Dickey's Barbecue Pit 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 Dickey's Barbecue Pit FDD and qualifies whose outlets they describe.
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 verdict score of 21 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.