Texas Roadhouse
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.
- Rated MODERATE with a risk score of 60/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- 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
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 Texas Roadhouse unit return on the cash you put in?
Unlevered ROIC · per unit
2%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 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
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.
Score breakdown · what drove the 60 / 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
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
30 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Texas Roadhouse · FDD (2024) PDF