Native Grill and Wings
Bottom line
- Total investment $1.0M – $2.9M including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.6M/year (median $2.8M).
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 15 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 Native Grill and Wings unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Native Grill and Wings units return on equity?
Equity IRR · 5-yr
27.7%
3.40× MOIC
Year-1 DSCR
2.94×
EBITDA ÷ debt service
Equity required
$11.5M
on $23.6M purchase
Total debt
$12.1M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate casual dining restaurants serving grilled wings, burgers, and American fare with full-service and bar operations. Day-to-day responsibilities include managing kitchen and front-of-house staff, inventory control, P&L management, customer service, and local marketing—typical for a $2.6M average-revenue QSR concept.
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 · 5 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
Declining franchise system with unproven unit-level profitability, parent company litigation history, and missing financial transparency creates elevated investment risk.
Score breakdown · what drove the 57 / 100 rating
- 01MEDUnit decline of 4.8% YoY (20 units) indicates contracting franchise system and weak unit economics or support
- 02MEDNet income not disclosed in Item 19 — cannot verify profitability claims; average revenue of $2.6M does not guarantee positive returns after 6% royalty, labor, COGS, and rent
- 03HIGHParent company FAT Brands settled $3M securities litigation in 2023 for allegedly false/misleading statements; raises credibility concerns about franchisor disclosures
- 04HIGHAffiliate litigation for unregistered franchise sales in Virginia (2023) suggests compliance and legal risk within corporate structure
- 05MEDHigh capital requirement ($1M–$2.9M) paired with shrinking unit base and undisclosed profitability creates significant downside risk
- 06MINOR10-year term with $50K fee in a declining system suggests weak franchisee attraction and retention
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
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Native Grill and Wings · FDD (2024) PDF