Hickory River Smokehouse
Bottom line
- Total investment $315K – $1.1M including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.8M/year (median $1.5M).
- Rated CAUTION with a risk score of 70/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- 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 Hickory River Smokehouse unit return on the cash you put in?
Unlevered ROIC · per unit
35%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Hickory River Smokehouse units return on equity?
Equity IRR · 5-yr
35.4%
4.56× MOIC
Year-1 DSCR
2.31×
EBITDA ÷ debt service
Equity required
$5.0M
on $14.2M purchase
Total debt
$9.3M
SBA $5.0M + senior + seller note
Overview
About
Hickory River Smokehouse franchisees operate quick-service or casual-dining BBQ restaurants specializing in smoked meats, sides, and regional smokehouse cuisine. Day-to-day operations include food preparation/smoking, customer service, inventory management, staff scheduling, and marketing within their local market. Franchisees must maintain brand standards while managing high food costs typical of BBQ operations.
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 12 · 2 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.
2
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hickory River Smokehouse presents HIGH RISK due to a contracting franchise system (down 16.7% YoY), undisclosed profitability metrics, franchisor going concern issues, and lack of territorial protection—classic indicators of a struggling brand with uncertain franchisee economics.
Score breakdown · what drove the 70 / 100 rating
- 01MEDUnit count declined 16.7% year-over-year (5 units represents a contracting system with high failure/non-renewal rate)
- 02MEDNet income not disclosed in FDD Item 19 — unable to validate profitability claims or ROI despite $315k-$1.08M investment requirement
- 03HIGHGoing concern status is FALSE — suggests financial instability or operational uncertainty at franchisor level
- 04MINORWide investment range ($769,500 spread) indicates inconsistent unit economics and unpredictable startup costs
- 05MINORNo territory protection — franchisees face direct competition from other Hickory River locations and cannibalization risk
- 06MINOR5% royalty on gross sales (not net) means royalties owed even during loss-making periods
- 07MEDOnly 5 units in system creates minimal franchisee network, limited peer support, and questions about viability
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
6 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hickory River Smokehouse · FDD (2025) PDF