Bottom line
- Total investment $462K – $899K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.6M/year (median $1.5M).
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 24 loans (below the industry average).
- System growing at 142.9% CAGR over 3 years with 24 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 Killer Burger unit return on the cash you put in?
Unlevered ROIC · per unit
37%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Killer Burger units return on equity?
Equity IRR · 5-yr
33.2%
4.20× MOIC
Year-1 DSCR
2.44×
EBITDA ÷ debt service
Equity required
$6.0M
on $15.8M purchase
Total debt
$9.7M
SBA $5.0M + senior + seller note
Overview
About
Killer Burger franchisees operate fast-casual burger restaurants, managing kitchen operations, inventory, staffing, and customer service. Day-to-day responsibilities include food preparation, point-of-sale management, staff scheduling, and adherence to brand standards. Franchisees are responsible for local marketing, lease obligations, and achieving revenue targets against their high initial capital investment.
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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage burger concept with aggressive growth, undisclosed profitability metrics, and franchisor financial concerns limiting due diligence confidence.
Score breakdown · what drove the 42 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — unable to validate profitability claims or actual ROI against $461.5k–$899k investment range
- 02HIGHGoing Concern designation is FALSE — indicates potential financial instability or accounting issues at franchisor level
- 03MEDHigh investment requirement ($461.5k–$899k) against disclosed average revenue of $1.576M creates unclear margin assumptions and payback timeline
- 04MINORRapid unit growth of 30.8% YoY with only 24 total units suggests early-stage system vulnerability and unproven unit economics at scale
- 05MINOR5% royalty on gross sales compounds risk if net margins are thin; without Item 19 data, franchisees cannot verify 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
29 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Killer Burger · FDD (2025) PDF