Bottom line
- Total investment $1.2M – $4.5M including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.4M/year (median $2.3M).
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- System growing at 42.0% CAGR over 3 years with 207 total units — strong expansion trajectory.
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 Slim Chickens unit return on the cash you put in?
Unlevered ROIC · per unit
13%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Slim Chickens units return on equity?
Equity IRR · 5-yr
28.4%
3.50× MOIC
Year-1 DSCR
2.85×
EBITDA ÷ debt service
Equity required
$10.4M
on $21.9M purchase
Total debt
$11.6M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate fast-casual chicken-focused quick-service restaurants serving made-to-order chicken sandwiches, tenders, and sides with a focus on quality ingredients and fresh preparation. Day-to-day operations include inventory management, food preparation oversight, staff scheduling, customer service, and marketing within a protected territory to drive foot traffic and delivery orders.
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 · 14 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
Slim Chickens presents meaningful litigation and disclosure risks with active fraud allegations, regulatory history, and absence of Item 19 financials that prevent independent validation of unit profitability against the stated $2.44M average revenue.
Score breakdown · what drove the 49 / 100 rating
- 01HIGHActive 2025 civil lawsuit by franchisees alleging fraud and breach of contract regarding sales/cost statement accuracy—suggests potential misrepresentation of unit economics
- 02MINOR2020 consent order with Washington State for selling unregistered franchises indicates regulatory compliance failures and prior enforcement action
- 03MEDNet income not disclosed in FDD Item 19—prevents validation of the $2.44M average revenue claim and actual profitability at unit level
- 04MEDHigh investment range ($1.23M–$4.47M) with undisclosed net income creates significant ROI uncertainty and payback period risk
- 05MINOR14% YoY unit growth is solid but modest for a growing QSR brand—suggests market saturation concerns or franchisee profitability issues limiting expansion appetite
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
89 numbers
One-time purchase · CSV download · Validation questions included