Gyro ShackFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Gyro Shack franchise requires a total initial investment of $263K – $656K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2023 FDD, average unit revenue was $513K[2]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $263K – $656K
- 15th pct Service Resta…
- Avg gross sales
- $513K
- 2nd pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 6
- 15th pct Service Resta…
- SBA default
- N/A
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
Bottom line
- Total investment $263K – $656K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $513K/year.
- Verdict F (Bottom Quintile) with a risk score of 79/100.
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Pronomio, LLC
- Parent company
- Arete Food Group, LLC
- Ultimate parent
- Gyro Shack Holdings, Inc.
- CEO title
- CEO
- Matt Jeffries
- Incorporated in
- ID
- HQ
- 12426 West Explorer Drive, Suite 230, Boise, Idaho 83713
- Auditor
- Harris CPAs
- Audited financials
- Franchisor revenue
- $100K
- vs $16K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Gyro Shack franchisees operate quick-service Mediterranean/Greek food restaurants, focusing on gyro sandwiches, wraps, and related items. Day-to-day operations include food preparation, counter service, inventory management, and customer service in a small-format location. Franchisees must maintain brand standards while managing labor, food costs, and local marketing within their unprotected territory.
- CEO
- Matt Jeffries
- Headquarters
- ID
- Founded
- 2015
- FDD year
- 2023
- States available
- 1
FDD Item 7 · 2023 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Leasehold Improvements, Construction Costnot refundable | $75K | $269K | |
| Licenses and Permitsnot refundable | $1K | $5K | |
| Rent - 3 monthsnot refundable | $8K | $30K | |
| Security Deposits | $2K | $10K | |
| Design & Architectural Feesnot refundable | $3K | $30K | |
| Furnishings & Fixturesnot refundable | $5K | $30K | |
| Restaurant Equipmentnot refundable | $50K | $95K | |
| Signagenot refundable | $5K | $35K | |
| Point-of-Sale Systemnot refundable | $4K | $20K | |
| Travel & Living Expenses While Trainingnot refundable | $11K | $20K | |
| Insurance - 3 Monthsnot refundable | $3K | $4K | |
| Professional Feesnot refundable | $3K | $3K | |
| Grand Opening Advertisingnot refundable | $5K | $15K | |
| Opening Inventory and Suppliesnot refundable | $10K | $10K | |
| Additional Funds - 3 Monthsnot refundable | $45K | $45K | |
| Total initial investment | $263K | $656K |
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
$54K
10.5% margin
Unlevered ROIC
11%
EBITDA / total invested capital
Payback
9.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $263K – $656K
- Better than avg vs category
- Liquid capital req'd
- $45K – $45K
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Training fee | $1K |
| Transfer fee | $5K |
| Renewal fee | $10K |
| Total fee load | 7.5% of rev |
Financial Performance
- Avg gross sales
- $513K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 6 units
- vs category median 13 · small
- Range (low → high)
- $387K→$866K
- Cohort dispersion (min → max)
- Reporting year
- 2022
- Fiscal year the figures cover
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Gyro Shack Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 17%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 6
- Franchisor's next-year forecast
- Ceased ops
- 33.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Gyro Shack presents elevated risk due to undisclosed profitability, micro-franchise system (6 units), unprotected territory, and franchisor going concern issues, making unit economics impossible to validate before significant capital commitment.
Litigation (Item 3)
No litigation is required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Harris CPAs
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 79 / 100 rating
- 01MINORNo average net income disclosure (Item 19) prevents ROI validation—critical for $263k-$655k investment
- 02MINOROnly 6 units systemwide suggests minimal scale, unproven model, and high failure risk
- 03MINORUnknown unit growth trajectory indicates possible contraction or stagnation
- 04MINORNo territory protection allows franchisor to saturate local markets and cannibalize sales
- 05HIGHGoing Concern status of False raises solvency questions about franchisor viability
- 06MINORWide investment range ($392k spread) suggests inconsistent unit economics or hidden costs
- 07MINOR6% royalty on $513k average revenue = $30.8k annual fee with unknown profitability baseline
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 |
| Allowed renewalsℹ | 1 |
| Territory type | Designated Territory |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| 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 | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Boise, Idaho |
| Jury trial waiver | Yes |
| Governing law | Idaho |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 31 hrs
- On-the-job training
- 85 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- POS system
- Revel
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel
Item 20 · call current owners
Franchisee Contacts
16 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Gyro Shack · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Gyro Shack franchise?
The total investment to open a Gyro Shack franchise ranges from $263K – $656K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Gyro Shack franchise owners earn?
According to Item 19 of the Gyro Shack FDD, the average gross sales per unit is $513K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Gyro Shack's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Gyro Shack (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 Gyro Shack franchise locations are there?
As of their most recent FDD filing, Gyro Shack has 6 total units in the United States, including 0 franchised units and 5 company-owned units. 1 new units were opened in the latest reporting year.
Is Gyro Shack a good franchise to buy?
FranchiseVerdict rates Gyro Shack as a F-grade franchise with a risk score of 79 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.