Great SteakFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Great Steak franchise requires a total initial investment of $154K – $663K, including a $30K franchise fee. Per the 2024 FDD, average unit revenue was $580K[2]. SBA 7(a) loans show a 28.8% charge-off rate across 75 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $154K – $663K
- 19th pct Service Resta…
- Avg gross sales
- $580K
- 13th pct Service Resta…
- Royalty
- N/A
- Units
- 24
- 50th pct Service Resta…
- SBA default
- 28.8%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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
28.8% of SBA loans charged off across 75 loans, above the 16% franchise average.
20 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $154K – $663K including a $30K franchise fee.
- Average unit revenue of $580K/year (median $465K).
- Verdict C (Average) with a risk score of 68/100. SBA loan charge-off rate of 28.8% across 75 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 20 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Kahala Franchising, L.L.C.
- Parent company
- Kahala Brands, Inc.
- Ultimate parent
- MTY Food Group, Inc.
- CEO title
- Chief Executive Officer
- Eric Lefebvre
- CEO experience
- 2018 yrs
- Years in role or industry
- Incorporated in
- AZ
- HQ
- 9311 E. Via De Ventura, Scottsdale, Arizona 85258
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $597.5M
- vs $606.6M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Great Steak franchisees operate quick-service sandwich/steak shops, likely comparable to Philly cheesesteak or premium sandwich concepts. Day-to-day operations involve food preparation, inventory management, staff scheduling, and counter service. The model appears volume-dependent given the high average revenue baseline ($579,903), requiring consistent customer traffic and operational efficiency.
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- Founded
- 2008
- FDD year
- 2024
- States available
- 12
FDD Item 7 · 2024 filing · 34 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Traditional) | $14K | $30K | |
| Lease Review Fee (Traditional) | $0 | $3K | |
| Rent/Security Deposit (3 months) (Traditional) | $12K | $20K | |
| Travel and Living Expenses (2 persons) during training (Traditional) | $3K | $5K | |
| Real Estate (Traditional) | — | — | |
| Architectural Fees (Traditional) | $15K | $25K | |
| Leasehold Improvements (Traditional) | $45K | $294K | |
| Restaurant Equipment, Furniture, Small Wares, Interior Signage and Menu Panels (Traditional) | $45K | $201K | |
| Exterior Signage (Traditional) | $10K | $17K | |
| Computer Hardware, Software (POS System) (Traditional) | $3K | $10K | |
| PCI Compliance Costs (Traditional) | $150 | $1K | |
| Opening Inventory (food and paper) (Traditional) | $3K | $7K | |
| Business Insurance (Traditional) | $1K | $5K | |
| Miscellaneous Opening Costs (Traditional) | $5K | $18K | |
| Grand Opening Marketing (Traditional) | $10K | $10K | |
| Depository Account (Traditional) | $3K | $3K | |
| Additional Funds - 3 month initial period (Traditional) | $5K | $15K | |
| Initial Franchise Fee (Non-Traditional) | $6K | $10K | |
| Lease Review Fee (Non-Traditional) | $0 | $3K | |
| Rent/Security Deposit (3 months) (Non-Traditional) | $6K | $20K | |
| Total initial investment | $326K | $1.1M |
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
$87K
15.0% margin
Unlevered ROIC
21%
EBITDA / total invested capital
Payback
4.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $154K – $663K
- Better than avg vs category
- Liquid capital req'd
- $5K – $15K
- Better than avg vs category
- Franchise fee
- $5K – $30K
- Better than avg vs category
- Royalty
- the greater of 6% of total weekly Gross Sales or $400 per…
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | greater of 6% of total weekly Gross Sales or $400 per week |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $75 |
| Training fee | $1K |
| Transfer fee | $8K |
| Renewal fee | $50 |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $580K
- Per unit, per year
- Median gross sales
- $465K
- Item 19 type
- gross_sales
- Sample size
- 23 units
- vs category median 28
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Great Steak Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 24
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.2%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -4.0%
- Net unit change last year
- 3-yr CAGR
- -7.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
- Projected new
- 0
- Franchisor's next-year forecast
- Transfer rate
- 8.3%
- Owners selling to other franchisees
- Continuity rate
- 96.0%
- Units that stayed open
- Ceased ops
- 4.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 12 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.
12
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 75
- Loan volume
- $13.5M
- Median loan
- $415K
- 50th percentile
- Charge-off rate
- 28.8%
- 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)
- 0.0%
- 5-yr charge-off
- 100.0%
- Loans approved 2021+
- Active lenders
- 33
- Defaults
- 19
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Great Steak's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
A 28.8% 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
Great Steak presents HIGH RISK due to declining unit base (-4% YoY), undisclosed profitability, multiple active litigations including franchise law violations, unprotected territory, and aggressive royalty floors relative to system revenue.
Litigation (Item 3)
Two concluded litigation cases involving franchisor predecessors and affiliates: (1) Purav Enterprises, L.L.C. et al. v. The Extreme Pita Franchising USA, Inc. et al. (Washington Superior Court, Case No. 15-2-15120-7) - franchisees alleged FIPA violations, misrepresentation of financial performance, and unregistered broker activity; settled March 11, 2016 for $20,000; (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565) - area representative dispute involving breach of contract, unjust enrichment, and fraud claims; Kahala prevailed at bench trial, awarded $205,000 in attorney's fees; settled June 19, 2017 with territory repurchase for $75,000 and forgiveness of $130,000 in damages.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 68 / 100 rating
- 01MINORSystem shrinking at -4.0% YoY (24 units) indicates declining franchisee success and potential market saturation
- 02HIGHMultiple ongoing litigations including Washington Franchise Investment Protection Act violations and misrepresentation claims suggest franchisor credibility issues
- 03MINORNo average net income disclosure (Item 19) prevents accurate ROI assessment despite $153.5K-$662.8K investment range
- 04MINORRoyalty floor of $400/week ($20,800/year) is aggressive relative to average revenue of $579,903, creating cash flow pressure in slow periods
- 05MINORUnprotected territory creates direct competition risk from other Great Steak franchisees in same market
- 06HIGHLitigation history includes state administrative consent orders, indicating regulatory enforcement actions
- 07MEDHigh investment ceiling ($662,850) with unit decline suggests franchisor pushing larger formats that underperform
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 | 5 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| 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 | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 14 days |
| Mandatory arbitration | Yes |
| Arbitration location | franchisee_state |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 20 |
View Item 3 litigation summary
Two concluded litigation cases involving franchisor predecessors and affiliates: (1) Purav Enterprises, L.L.C. et al. v. The Extreme Pita Franchising USA, Inc. et al. (Washington Superior Court, Case No. 15-2-15120-7) - franchisees alleged FIPA violations, misrepresentation of financial performance, and unregistered broker activity; settled March 11, 2016 for $20,000; (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565) - area representative dispute involving breach of contract, unjust enrichment, and fraud claims; Kahala prevailed at bench trial, awarded $205,000 in attorney's fees; settled June 19, 2017 with territory repurchase for $75,000 and forgiveness of $130,000 in damages.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 40 hrs
- Training location
- Off-site and on-site
- Time to open
- 9 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
2 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Great Steak · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Great Steak franchise?
The total investment to open a Great Steak franchise ranges from $154K – $663K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Great Steak franchise owners earn?
According to Item 19 of the Great Steak FDD, the average gross sales per unit is $580K. The median is $465K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Great Steak's franchise failure rate?
Based on SBA 7(a) loan data, Great Steak has a charge-off rate of 28.8% across 75 loans, meaning 28.8% 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 Great Steak franchise locations are there?
As of their most recent FDD filing, Great Steak has 24 total units in the United States, including 24 franchised units and 0 company-owned units.
Is Great Steak a good franchise to buy?
FranchiseVerdict rates Great Steak as a C-grade franchise with a risk score of 68 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.
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.