Love & Honey Fried Chicken
Bottom line
- Total investment $521K – $865K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.9M/year.
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
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 Love & Honey Fried Chicken unit return on the cash you put in?
Unlevered ROIC · per unit
35%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Love & Honey Fried Chicken units return on equity?
Equity IRR · 5-yr
37.9%
4.99× MOIC
Year-1 DSCR
2.20×
EBITDA ÷ debt service
Equity required
$4.1M
on $13.0M purchase
Total debt
$8.9M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate Love & Honey fried chicken quick-service restaurants, managing daily food preparation, customer service, inventory, and staff scheduling. Operations focus on branded fried chicken products with standardized recipes, preparation protocols, and point-of-sale systems defined by the franchisor. Franchisees handle P&L responsibility, local marketing, staffing, and regulatory compliance while paying 6% of weekly gross sales to corporate.
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 · 17 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
Love & Honey presents CAUTION-level risk: a severely under-developed franchise system (1 unit) with undisclosed profitability, aggressive fee structure, and unproven unit economics masking potential franchisor financial distress.
Score breakdown · what drove the 63 / 100 rating
- 01MINOROnly 1 operating unit with unknown growth trajectory indicates unproven franchise model at scale
- 02MEDNet income not disclosed despite $1.86M average revenue — suggests profitability concerns or franchisor unwillingness to validate earnings
- 03HIGHGoing Concern flag is False, which is atypical disclosure language and may indicate financial instability at franchisor level
- 04MINORHigh initial investment range ($521K–$864K) relative to single-unit track record creates significant franchisee risk
- 05MINOR6% royalty on weekly gross revenue (not net) is aggressive and compounds cash flow pressure in low-margin QSR industry
- 06MINOR10-year term is long given unproven system with minimal operating history to demonstrate sustainability
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
19 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Love & Honey Fried Chicken · FDD (2025) PDF