Little Big Burger
Bottom line
- Total investment $206K – $607K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $763K/year (median $790K).
- Rated MODERATE with a risk score of 62/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Little Big Burger unit return on the cash you put in?
Unlevered ROIC · per unit
30%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Little Big Burger units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.5M
on $7.3M purchase
Total debt
$5.8M
SBA $3.6M + senior + seller note
Overview
About
Franchisees operate quick-service burger restaurants featuring premium, locally-sourced ingredients and craft burgers. Day-to-day operations include food preparation, customer service, inventory management, and staffing in a limited-service format with average unit volumes around $763K annually.
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 · 3 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Micro-franchise system with undisclosed profitability metrics, corporate litigation history, and parent company going concern issues presents meaningful execution and transparency risks despite reasonable royalty rate.
Score breakdown · what drove the 62 / 100 rating
- 01HIGHParent company (Chanticleer Holdings) settled $850K securities litigation in 2012-2014, indicating governance/disclosure concerns at corporate level
- 02MEDNet income not disclosed in FDD — inability to validate profitability claims against $763K average revenue figure
- 03MINOROnly 16 franchise units with unknown growth trajectory — extremely small system raises sustainability questions
- 04HIGHGoing Concern status suggests financial instability at parent company despite franchise recruitment
- 05MEDHigh investment range ($206K-$607K) paired with undisclosed net income creates opacity on ROI timeline
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
4 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Little Big Burger · FDD (2022) PDF