Texas Roadhouse Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Texas Roadhouse is a casual-dining steakhouse franchise known for hand-cut steaks, ribs, fresh-baked rolls, and a lively Texas theme with a full bar. Franchisees operate full-service restaurants managing kitchen, bar, and a large service staff.
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). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $3.9M – $7.9M
- 40th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 2nd pct Service Resta…
- Units
- 638
- 37th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $3.9M – $7.9M including a $40K franchise fee, 4.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict A (Strongest tier), verdict score 65/100 (higher is better).
- DECLINESystem 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
Corporate structure & franchisor financials
- Legal entity
- Texas Roadhouse Development Corporation
- Parent company
- Texas Roadhouse, Inc. (TXRH)
- 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
- Kentucky
- 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
- CEO
- Gerald L. Morgan
- Headquarters
- KY
- Founded
- 1993
- FDD year
- 2024
- States available
- 19
Can you afford it, and what does the money buy?
Entry cost runs 405% above the typical full-service restaurants franchise.
Source: FDD 2024 · Items 5–7
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
- Top 40% of category vs category
- Liquid capital req'd
- $442K – $800K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category 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 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Texas Roadhouse did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Texas Roadhouse unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
1%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 4.3% — below the Full-Service Restaurants average of 7.6%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -20.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants averages
How Texas Roadhouse Compares
Is the system healthy?
Source: FDD 2024 · Item 20
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
- 1.8%
- Company-owned
- 582
- Corporate units in the system
- % franchised
- 9%
- vs corporate-owned
- Net growth (3-yr)
- +3.2%
- Net unit change over 3 years
- 3-yr CAGR
- -20.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 8
- Franchisor bought back
- 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
- N/A
- limited sample (5 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
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 65 / 100 verdict
- 01MINOR638 units, established since 1995
- 02HIGHNo litigation, bankruptcy, or going-concern; audited
- 03MINORVery low turnover 1.79%
- 04MINORNet growth -20% reflects unit-mix, not financial distress
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 4.3% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 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 Item 19 in the Texas Roadhouse FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Texas Roadhouse FDD and qualifies whose outlets they describe.
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 verdict score of 65 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.