FranchiseVerdict
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FV-01538·MODERATEExcellent86FDD 2022

Mad for Chicken

Food & Beverage - Full ServiceFranchising since 2019Website
Investment
$437K – $917K
58th pct Full Service
Avg revenue
$2.7M
49th pct Full Service
Royalty
5.0%
15th pct Full Service
Units
9
39th pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $437K – $917K including a $35K franchise fee, 5.0% ongoing royalty.
  • Average unit revenue of $2.7M/year.
  • Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Mad for Chicken Franchise Inc.
Incorporated in
New York
HQ
1035 Old Country Road, Westbury, New York 11590
Auditor
Akiva Manne, CPA
Audited financials
Franchisor revenue
$7K
vs $149K prior year

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 Mad for Chicken unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $2,710,075
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $437K–$917K
Working capital
$
FDD reports $60K–$205K

Unlevered ROIC · per unit

57%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$461K
EBITDA margin
17.0%
Total invested
$810K
Payback
21 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Mad for Chicken units return on equity?

Edit assumptions

Equity IRR · 5-yr

26.5%

3.24× MOIC

Year-1 DSCR

3.10×

EBITDA ÷ debt service

Equity required

$14.0M

on $27.1M purchase

Total debt

$13.1M

SBA $5.0M + senior + seller note

SBA 7(a) request ($13.6M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

Mad for Chicken franchisees operate quick-service chicken restaurants, likely handling daily operations including food preparation, customer service, inventory management, and staff scheduling. Revenue averages $2.71M annually per unit, though actual net profitability remains undisclosed.

CEO
Sean Cho
Founded
2019
FDD year
2022
States available
2

Item 7 · what it costs

The Vitals

Total investment
$437K – $917K
All-in to open one unit
Liquid capital
$60K – $205K
Cash you must have on hand
Franchise fee
$35K
Royalty
5.0%
Percentage of weekly Gross Revenue · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$2.7M
Per unit, per year
Median gross sales
Item 19 type
Historic financial performance of affiliate-owned outlets
Sample size
4 units
vs category median 15 · small
Range (low → high)
$1.3M$3.8M
Cohort dispersion
Transparency
3 / 5
vs category median 4 / 5 · below
Revenue rank49th
vs Food & Beverage - Full Service peers
Investment cost rank58th
Lower investment ranks lower (better)
Royalty rate rank15th
Lower royalty = lower percentile (better)
Unit count rank39th
vs Food & Beverage - Full Service peers
Risk score rank59th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
9
Opened
5
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
4
Corporate units in the system
% franchised
56%
vs corporate-owned
Multi-unit owners
1.0%
2020
5+7
Franchised units
2021
0
Franchised units
2022
0
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 16 states
Not registered

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.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

64
Risk · 0-100
MODERATE64 / 100

Caution-to-High Risk: A micro-franchise (9 units) with going concern issues, undisclosed profitability, and incomplete financial transparency makes ROI validation impossible despite favorable royalty terms.

Score breakdown · what drove the 64 / 100 rating

  1. 01HIGHGoing Concern status is FALSE — indicates potential financial instability or undisclosed operational challenges at corporate level
  2. 02MEDNet Income not disclosed in Item 19 — impossible to validate actual profitability despite $2.71M average revenue claim
  3. 03MINOROnly 9 units system-wide — extremely small franchise network raises questions about scalability, support infrastructure, and corporate viability
  4. 04MINORWide investment range ($436K–$917K spread of 110%) — suggests inconsistent unit economics or lack of standardized build-outs
  5. 05MEDNo disclosed unit growth trajectory — cannot assess whether the 9 units are stable, growing, or declining
  6. 06MINOR5% royalty on gross revenue — favorable rate masks inability to evaluate net unit economics without profit disclosure

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius or zip codes
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
New York

Item 11

Training & Operations

Classroom training
25 hrs
On-the-job training
153 hrs
POS system
RPOWER POS
Operating tech stack

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

18 numbers

Locked
(917) 903-••••
Clinton Oh Sean Cho
NY
(317) 232-••••
IN
(860) 240-••••
CT

One-time purchase · CSV download · Validation questions included

FDD download

Mad for Chicken · FDD (2022) PDF

Single-page checkout · instant download · CSV export of contacts available separately above