Huey Magoo’s Chicken Tenders
Bottom line
- Total investment $933K – $3.0M including a $35K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.1M/year (median $2.1M).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 21 loans (below the industry average).
- System growing at 64.3% CAGR over 3 years with 71 total units — strong expansion trajectory.
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 Huey Magoo’s Chicken Tenders unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Huey Magoo’s Chicken Tenders units return on equity?
Equity IRR · 5-yr
30.0%
3.72× MOIC
Year-1 DSCR
2.68×
EBITDA ÷ debt service
Equity required
$8.4M
on $19.2M purchase
Total debt
$10.8M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate quick-service chicken tender restaurants featuring customizable tenders, signature sauces, and sides. Day-to-day responsibilities include managing kitchen production, order fulfillment, staff scheduling, inventory control, and customer service in a high-volume format. Owners typically oversee 15-25 employees across lunch and dinner service periods.
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 · 11 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Huey Magoo's presents moderate-to-cautionary risk: rapid growth, undisclosed profitability, large capital requirements, and insufficient unit maturity limit due diligence confidence.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNet income not disclosed in Item 19 — unable to validate actual profitability claims against $2.13M average revenue
- 02MEDHigh initial investment range ($933K-$3M) with 5% royalty creates significant breakeven burden without disclosed profit margins
- 03MINORRapid unit growth (27.8% YoY) may indicate aggressive expansion outpacing operational support or franchisee success validation
- 04MINORSmall unit base (71 locations) limits statistical reliability of 'average revenue' figure and increases volatility risk
- 05HIGHNo going concern statement — ambiguous franchisor financial health despite rapid growth claims
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
58 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Huey Magoo’s Chicken Tenders · FDD (2025) PDF