KrystalFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Krystal franchise requires a total initial investment of $1.4M – $2.2M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. Per the 2024 FDD, average unit revenue was $982K[2]. SBA 7(a) loans show a 22.7% charge-off rate across 33 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $1.4M – $2.2M
- 97th pct Service Resta…
- Avg gross sales
- $982K
- 34th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 280
- 84th pct Service Resta…
- SBA default
- 22.7%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.6x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
22.7% of SBA loans charged off across 33 loans, above the 16% franchise average.
Franchising since 1990. Systems this mature have refined operations and brand recognition.
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), with an estimated 6% cash-on-cash return (based on Gross Margin). Note: this is gross profit, not take-home income.
- Verdict D (Below Average) with a risk score of 76/100. SBA loan charge-off rate of 22.7% across 33 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 36.2% CAGR over 3 years with 280 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Krystal Restaurants LLC
- Parent company
- SPB LeadershipCo LLC
- Incorporated in
- DE
- HQ
- 1455 Lincoln Parkway E., Suite 600, Dunwoody, GA 30346
- Auditor
- FORVIS, LLP
- Audited financials
- Franchisor revenue
- $211.1M
- vs $170.7M prior year
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.
- CEO
- Josh Kern
- Headquarters
- GA
- Founded
- 1932
- FDD year
- 2024
- States available
- 10
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $50K | $100K |
| Equipment, build-out, other | $1.3M | $2.0M |
| Total initial investment | $1.4M | $2.2M |
Source: Krystal 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$123K
12.5% margin
Unlevered ROIC
7%
EBITDA / total invested capital
Payback
15.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.4M – $2.2M
- Below avg, review vs category
- Liquid capital req'd
- $50K – $100K
- Below avg, review vs category
- Franchise fee
- $35K – $35K
- Near category avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 4.5%
- typical 3–5%
- Total fee load
- 9.5%
- vs 9–13% typical
- Payback period
- 15.6 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 4.5% of gross sales |
| Technology fee | $337 |
| Transfer fee | $15K |
| Renewal fee | $18K |
| Total fee load | 9.5% of rev |
Financial Performance
- Avg gross sales
- $982K
- Per unit, per year
- Median gross sales
- $964K
- Avg gross margin
- $113K
- Reported as Gross Margin in FDD Item 19
- Cash-on-cash
- 6.4%
- Based on Gross Margin / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 142 units
- vs category median 28 · large
- Range (low → high)
- $344K→$1.9M
- Cohort dispersion (min → max)
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Quick-Service Restaurants averages
How Krystal Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 280
- Opened
- 20
- Last reporting year
- Closed
- 4
- Turnover rate
- 1.4%
- Company-owned
- 137
- Corporate units in the system
- % franchised
- 51%
- vs corporate-owned
- Net growth (yr3)
- +12.6%
- Net unit change last year
- 3-yr CAGR
- +36.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 3
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 33
- Loan volume
- $16.8M
- Median loan
- $322K
- 50th percentile
- Charge-off rate
- 22.7%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 15
- Defaults
- 5
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Krystal's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
A 22.7% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
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.
Audited financials (Item 21)
Yes · FORVIS, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 76 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 300 hrs
- POS system
- NCR Aloha
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR Aloha
Item 20 · call current owners
Franchisee Contacts
41 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Krystal · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Krystal franchise?
The total investment to open a Krystal franchise ranges from $1.4M – $2.2M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Krystal franchise owners earn?
According to Item 19 of the Krystal FDD, the average gross sales per unit is $982K. The median is $964K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Krystal's franchise failure rate?
Based on SBA 7(a) loan data, Krystal has a charge-off rate of 22.7% across 33 loans, meaning 22.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Krystal franchise locations are there?
As of their most recent FDD filing, Krystal has 280 total units in the United States, including 105 franchised units and 137 company-owned units. 20 new units were opened in the latest reporting year.
Is Krystal a good franchise to buy?
FranchiseVerdict rates Krystal as a D-grade franchise with a risk score of 76 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.