Bottom line
- Total investment $1.4M – $2.2M including a $35K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $982K/year (median $964K). Estimated payback in 15.6 years.
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- System growing at 3620% CAGR over 3 years with 280 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 Krystal unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Krystal units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.1M
on $5.4M purchase
Total debt
$4.3M
SBA $2.7M + senior + seller note
Overview
About
Krystal franchisees operate quick-service restaurant locations focused on affordable, slider-style burgers and comfort food. Day-to-day operations include food preparation, drive-thru/counter service, inventory management, staff scheduling, and local marketing in protected territories.
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 · 23 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
Krystal presents moderate-to-high risk due to parent company going concern status, thin unit growth, tight unit economics, and lack of Item 19 financial disclosure—requiring deep validation before commitment.
Score breakdown · what drove the 51 / 100 rating
- 01HIGHGoing Concern warning indicates parent company financial distress or viability questions
- 02MINOR11.5% net profit margin is thin; leaves minimal buffer for underperformance or economic downturns
- 03MINOR280 units with only 12.6% YoY growth suggests mature/saturated system; no Item 19 provided limits income verification
- 04MINORHigh initial investment ($1.38M-$2.16M) against modest average net income ($113K) yields 12-19 year payback period
- 05MED5% royalty on $981K avg revenue = ~$49K annual fee; combined with overhead, leaves limited margin for error
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
41 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Krystal · FDD (2024) PDF