Texas Roadhouse Franchise Cost, Revenue & Review 2026
- Investment
- $5.4M – $7.9M
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (5)
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 $5.4M – $7.9M, including a $40K franchise fee and an ongoing 4.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 4 headline figures on this page cite a page of the filing.
Overview
- Investment
- $5.4M – $7.9M
- 41st pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 3rd 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 median · 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 $5.4M – $7.9M including a $40K franchise fee, 4.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 64/100 (higher is better).
- GROWTHNegative: net -6 franchised outlets in the latest year (3 opened, 9 closed) (Item 20).
- 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)
- FDD Item 1, page 7 of the 2024 FDD
- 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
Same owner · FDD Item 1, page 7
1 other brand on this site name Texas Roadhouse, Inc. (TXRH) as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2024 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 881% above the typical full-service restaurants franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee (1) | $40K | $40K | |
| Leasehold/Building Improvements (2) | $2.5M | $3.3M | |
| Architectural/Engineering/Site Evaluation (3) | $190K | $280K | |
| Builders Risk and OCP Insurance | $5K | $12K | |
| Performance Bonds (4) | $14K | $38K | |
| Furniture, Decor and Fixtures (5) | $290K | $370K | |
| Equipment (6) | $1.1M | $1.3M | |
| Signs (7) | $80K | $150K | |
| Insurance (8) | $60K | $140K | |
| Initial Inventory (9) | $39K | $62K | |
| Supplies (10) | $20K | $35K | |
| Smallwares (11) | $50K | $70K | |
| Computer Hardware/Software; POS System/Network Cabling Fees (12) | $220K | $250K | |
| Marketing and Promotional Materials (13) | $1K | $10K | |
| Training Costs/Opening Assistance (14) | $90K | $140K | |
| Licenses, Permits, Incorporation (15) | $120K | $300K | |
| Liquor Licenses (16) | $1K | $300K | |
| Utility and Telephone Deposits (17) | $5K | $50K | |
| Other Pre-opening Costs Not Listed Above (18) | $130K | $255K | |
| Additional Funds (3 months) (19) | $442K | $800K | |
| Total initial investment | $5.4M | $7.9M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $5.4M – $7.9M
- Middle 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%
- 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 |
| Inventory (initial) | $39K – $62K |
| Total fee load | 4.3% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Texas Roadhouse makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Texas Roadhouse unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 median of 7.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Texas Roadhouse Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- 9
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.4%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Reacquired
- 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.
Where the owners are · Item 20 owner list
30 current owners across 20 states.
- CA 4
- IN 3
- TX 3
- PA 2
- WI 2
- WV 2
- CO 1
- DE 1
- GA 1
- KS 1
- KY 1
- LA 1
- +8 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (5)
- Insufficient SBA coverage: 5 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (5)
- 5-yr charge-off
- Under 10 loans (5)
- 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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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)
Item 21 uses the audited CONSOLIDATED financial statements of the franchisor's parent/guarantor, Texas Roadhouse, Inc. (TXRH), as of December 26, 2023 and December 27, 2022, audited by KPMG LLP (report dated February 23, 2024). The franchisor (Texas Roadhouse Development Corporation) is no longer separately audited; its statements are an element of the parent's consolidated statements, and the parent unconditionally guarantees franchisee obligations. The actual balance-sheet and income-statement figures appear only in image-based tables in Exhibit A that were not captured in the extracted text, so specific dollar amounts could not be read and are left null rather than guessed.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 64 / 100 verdict
- 01MINOR638 units, established since 1995
- 02HIGHNo litigation, bankruptcy, or going-concern; audited
- 03MINORNet 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 | Protected territory |
| 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 |
| Termination groundsℹ | 18 |
| Curable defaultsℹ | 6 |
| 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
- Site selection
- franchisee (subject to franchisor approval)
- Franchisor financing
- Not offered
- Item 10
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
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 $5.4M – $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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Texas Roadhouse?
Texas Roadhouse is franchised by Texas Roadhouse Development Corporation. Its parent company is Texas Roadhouse, Inc. (TXRH). Source: FDD Item 1, 2024 filing.
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 B-grade franchise with a verdict score of 64 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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?
If you represent Texas Roadhouse, you can request corrections or provide updated information.
Other Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.