Texas RoadhouseFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Texas Roadhouse franchise requires a total initial investment of $3.9M – $7.9M, including a $40K franchise fee and an ongoing 4.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $3.9M – $7.9M
- 48th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 638
- 48th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1995. Systems this mature have refined operations and brand recognition.
The system contracted 10% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $3.9M – $7.9M including a $40K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 40/100.
- System contracting at -20.0% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Texas Roadhouse Development Corporation
- Parent company
- Texas Roadhouse, Inc.
- CEO title
- President of TRDC and Chief Executive Officer of TXRH
- Gerald L. Morgan
- CEO experience
- 27 yrs
- Years in role or industry
- Incorporated in
- KY
- HQ
- 6040 Dutchmans Lane, Louisville, Kentucky 40205
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $3.5B
- vs $4.0B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate casual-dining steakhouse restaurants, managing kitchen, service, and bar operations while serving Texas-themed cuisine. Day-to-day responsibilities include staffing, food cost control, customer service, and adherence to brand standards across full-service dining environments with average check sizes and alcohol sales.
- CEO
- Gerald L. Morgan
- Headquarters
- KY
- Founded
- 1995
- FDD year
- 2024
- States available
- 19
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $442K | $800K |
| Equipment, build-out, other | $3.4M | $7.1M |
| Total initial investment | $3.9M | $7.9M |
Source: Texas Roadhouse 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $3.9M – $7.9M
- Near category avg vs category
- Liquid capital req'd
- $442K – $800K
- Near category avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 4.0%
- Gross Sales · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 4.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Technology fee | $350 |
| Training fee | $4K |
| Transfer fee | $4K |
| Renewal fee | $15K |
| Total fee load | 4.3% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Texas Roadhouse Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 638
- Opened
- 3
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.2%
- Company-owned
- 582
- Corporate units in the system
- % franchised
- 9%
- vs corporate-owned
- Net growth (yr3)
- -9.7%
- Net unit change last year
- 3-yr CAGR
- -20.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Continuity rate
- 86.2%
- Units that stayed open
- Ceased ops
- 0.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $4.0M
- Median loan
- $940K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Texas Roadhouse's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Texas Roadhouse's shrinking franchise network and absence of financial performance disclosure create meaningful uncertainty about unit-level profitability and long-term viability for new investors.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 rating
- 01MEDUnit count declined 9.7% year-over-year (638 units), indicating system contraction and potential franchisee struggles
- 02MINORNo average revenue or net income disclosure (Item 19) prevents validation of profitability claims and ROI transparency
- 03MINORHigh capital investment range ($3.9M–$7.9M) creates significant financial exposure with unverified return metrics
- 04MEDLarge franchise fee of $40,000 combined with undisclosed unit economics raises concerns about franchisor dependency on fees vs. franchisee success
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 30 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 45 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Kentucky |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 94 hrs
- On-the-job training
- 483 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
30 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Texas Roadhouse · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Texas Roadhouse franchise?
The total investment to open a Texas Roadhouse franchise ranges from $3.9M – $7.9M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Texas Roadhouse franchise owners earn?
Texas Roadhouse does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Texas Roadhouse's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Texas Roadhouse (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Texas Roadhouse franchise locations are there?
As of their most recent FDD filing, Texas Roadhouse has 638 total units in the United States, including 56 franchised units and 582 company-owned units. 3 new units were opened in the latest reporting year.
Is Texas Roadhouse a good franchise to buy?
FranchiseVerdict rates Texas Roadhouse as a A-grade franchise with a risk score of 40 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.