Bottom line
- Total investment $755K – $2.1M including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.8M/year (median $1.7M).
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 4 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 Roy Rogers unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Roy Rogers units return on equity?
Equity IRR · 5-yr
34.3%
4.38× MOIC
Year-1 DSCR
2.37×
EBITDA ÷ debt service
Equity required
$5.4M
on $14.9M purchase
Total debt
$9.5M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate quick-service restaurant locations serving chicken, roast beef sandwiches, and breakfast items. Day-to-day responsibilities include inventory management, food preparation oversight, staff scheduling, customer service, and local marketing within their protected territory.
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 · 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).
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
Roy Rogers presents meaningful risk due to going concern status, undisclosed profitability metrics, small stagnant unit count, and high capital requirements relative to disclosed revenue.
Score breakdown · what drove the 65 / 100 rating
- 01HIGHGoing Concern warning indicates potential financial instability or restructuring risk
- 02MEDNet Income not disclosed in Item 19 prevents accurate ROI calculation and profitability assessment
- 03MINOROnly 39 units with unknown growth trajectory suggests stagnant or declining system
- 04MINORHigh investment range ($755K-$2.1M) with 5% royalty requires $1.76M+ average revenue to break even
- 05MINOR20-year term locks franchisee into potentially troubled brand longer than industry standard
- 06HIGHNo litigation disclosure combined with going concern raises transparency concerns
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
53 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Roy Rogers · FDD (2025) PDF