South Philly Steaks & Fries / South Philly Cheesesteaks & Fries
Bottom line
- Total investment $321K – $607K including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.2M/year (median $1.2M).
- Rated CAUTION with a risk score of 70/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 South Philly Steaks & Fries / South Philly Cheesesteaks & Fries unit return on the cash you put in?
Unlevered ROIC · per unit
41%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 South Philly Steaks & Fries / South Philly Cheesesteaks & Fries units return on equity?
Equity IRR · 5-yr
40.5%
5.47× MOIC
Year-1 DSCR
2.10×
EBITDA ÷ debt service
Equity required
$3.4M
on $12.0M purchase
Total debt
$8.6M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate quick-service restaurants specializing in Philadelphia-style cheesesteaks and fries. Day-to-day operations include food preparation, customer service, inventory management, and maintaining brand standards across a small footprint concept designed for strip malls or kiosks.
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 · 19 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
A financially distressed 6-unit system with active litigation, undisclosed profitability, no territory protection, and going concern issues presents substantial risk that franchisor may lack operational viability or franchisee support infrastructure.
Score breakdown · what drove the 70 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates financial instability or viability questions at franchisor level
- 02MINOROnly 6 units system-wide with unknown growth trajectory suggests stagnant or declining franchise system
- 03HIGHMultiple litigation cases including trademark infringement, unpaid royalties, and lease disputes indicate operational and legal mismanagement
- 04MEDNet income not disclosed — unable to assess actual profitability despite $1.2M average revenue claim
- 05MINORNo territory protection leaves franchisees vulnerable to cannibalization by franchisor or other franchisees
- 06MINORJudgments against former affiliates for rental defaults suggest franchisor may lack oversight and support capability
- 07MINOR5% royalty on claimed $1.2M revenue = $60K annually, but without net income data, true ROI on $321K-$607K investment is unverifiable
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
25 numbers
One-time purchase · CSV download · Validation questions included
FDD download
South Philly Steaks & Fries / South Philly Cheesesteaks & Fries · FDD (2025) PDF