Foster's GrilleFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A FOSTER'S GRILLE franchise requires a total initial investment of $259K – $539K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.0M[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $259K – $539K
- 14th pct Service Resta…
- Avg gross sales
- $1.0M
- 10th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 12
- 23rd pct Service Resta…
- SBA default
- 33.3%
- 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
26% cash-on-cash return. Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $259K – $539K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.0M/year (median $874K), with an estimated 26% cash-on-cash return.
- Verdict B (Above Average) with a risk score of 61/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Foster’s Franchise Concepts, LLC
- Parent company
- Zeuss, LC
- Incorporated in
- VA
- HQ
- 4432 Costello Way, Haymarket, Virginia 20169
- Auditor
- CST Group, CPAs, PC
- Audited financials
- Franchisor revenue
- $286K
- vs $297K prior year
Overview
About
FOSTER'S GRILLE franchisees operate a casual dining restaurant concept, managing day-to-day operations including food preparation, table service, inventory control, staffing, and customer experience. Franchisees oversee kitchen and front-of-house teams while maintaining brand standards, handling P&L responsibility, and driving local marketing to meet the $1M average revenue target.
- CEO
- Michael J. Cerny
- Headquarters
- VA
- Founded
- 2005
- FDD year
- 2025
- States available
- 3
FDD Item 7 · 2025 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Travel, Lodging and Meals for Initial Training (per person)not refundable | $1K | $2K | |
| Prepaid Rent and Security Depositnot refundable | $5K | $20K | |
| Leasehold Improvementsnot refundable | $100K | $300K | |
| Fixtures and Signagenot refundable | $15K | $25K | |
| Furniturenot refundable | $15K | $18K | |
| Equipmentnot refundable | $50K | $65K | |
| POS and Back Office Computer Systemnot refundable | $0 | $3K | |
| Grand Opening Advertisingnot refundable | $2K | $3K | |
| Initial Inventorynot refundable | $5K | $8K | |
| Utility Depositsnot refundable | $500 | $2K | |
| Professional Fees (Lawyer, Accountant, etc.)not refundable | $2K | $5K | |
| Supplies (Office Supplies, Stationery, Business Cards, etc.)not refundable | $1K | $3K | |
| Business Licenses, Permits, etc.not refundable | $1K | $3K | |
| Insurancenot refundable | $1K | $3K | |
| Additional Fundsnot refundable | $20K | $40K | |
| Area Development Feenot refundable | $18K | $18K | |
| Total initial investment | $276K | $556K |
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.
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
$100K
10.0% margin
Unlevered ROIC
23%
EBITDA / total invested capital
Payback
4.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $259K – $539K
- Better than avg vs category
- Liquid capital req'd
- $20K – $40K
- Better than avg vs category
- Franchise fee
- $32K – $40K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 3.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $160 |
| Transfer fee | $10K |
| Renewal fee | $4K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $1.0M
- Per unit, per year
- Median gross sales
- $874K
- Avg net income
- $102K
- Cash-on-cash
- 25.5%
- Based on Net Income / investment midpoint
- Item 19 type
- Average and Median
- Sample size
- 12 units
- vs category median 13
- Range (low → high)
- $656K→$1.4M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Foster's Grille Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 12
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 42%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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.
Available to sell in · Item 12
- Maryland
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $1.3M
- Median loan
- $198K
- 50th percentile
- Charge-off rate
- 33.3%
- 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)
- 66.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Foster's Grille's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Going concern status, stagnant unit count, missing financial disclosures, and thin margins indicate a struggling franchise system with uncertain franchisor stability and unproven unit economics.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CST Group, CPAs, PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 61 / 100 rating
- 01HIGHGoing Concern Warning: Franchisor's ability to continue operations is questioned, indicating potential financial distress or viability issues
- 02MINORStagnant Unit Growth: Only 12 units with unknown/unclear growth trajectory suggests market rejection or expansion problems
- 03MINORNo Item 19 Financial Data: Absence of average unit volumes or profitability disclosures prevents validation of the $1M average revenue claim
- 04MINORHigh Investment-to-Net-Income Ratio: $258K–$539K investment against $101K average net income yields 2.5–5.3 year payback with significant downside risk
- 05MINORThin Operating Margins: 10.2% net margin ($101K/$1M) is concerning for restaurant/food service and leaves minimal cushion for underperformance
- 06MEDUndisclosed Growth Metrics: 'Unknown growth' in a 12-unit system raises questions about transparency and whether franchisees are actually succeeding
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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Geographic |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 23 hrs
- On-the-job training
- 73 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- Focus POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Focus POS
Item 20 · call current owners
Franchisee Contacts
16 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
FOSTER'S GRILLE · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a FOSTER'S GRILLE franchise?
The total investment to open a FOSTER'S GRILLE franchise ranges from $259K – $539K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do FOSTER'S GRILLE franchise owners earn?
According to Item 19 of the FOSTER'S GRILLE FDD, the average gross sales per unit is $1.0M. The median is $874K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is FOSTER'S GRILLE's franchise failure rate?
SBA 7(a) loan charge-off data is not available for FOSTER'S GRILLE (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 FOSTER'S GRILLE franchise locations are there?
As of their most recent FDD filing, FOSTER'S GRILLE has 12 total units in the United States, including 5 franchised units and 7 company-owned units.
Is FOSTER'S GRILLE a good franchise to buy?
FranchiseVerdict rates FOSTER'S GRILLE as a B-grade franchise with a risk score of 61 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.