Bottom line
- Total investment $263K – $656K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $513K/year.
- Rated MODERATE with a risk score of 67/100.
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Gyro Shack unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Gyro Shack units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$873K
on $4.4M purchase
Total debt
$3.5M
SBA $2.2M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 67 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Gyro Shack · FDD (2023) PDF