TFS Burger WorksFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A TFS Burger Works franchise requires a total initial investment of $265K – $389K, including a $50K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $834K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $265K – $389K
- 15th pct Service Resta…
- Avg gross sales
- $834K
- 7th pct Service Resta…
- Royalty
- 7.0%
- 42nd pct Service Resta…
- Units
- 2
- 6th pct Service Resta…
- SBA default
- N/A
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
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $265K – $389K including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $834K/year.
- Verdict B (Above Average) with a risk score of 58/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- TFS Franchise Works LLC
- Incorporated in
- NY
- HQ
- 243 RT 9W, Palisades, NY 10964
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $0
- vs $0 prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate quick-service burger restaurants, managing daily food preparation, customer service, staffing, and inventory. Operations focus on burger-centric menu execution with standard QSR workflows including POS management, food cost control, and local marketing within protected territory.
- CEO
- Nick Hill
- Headquarters
- NY
- Founded
- 2023
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $30K | $50K |
| Equipment, build-out, other | $185K | $289K |
| Total initial investment | $265K | $389K |
Source: TFS Burger Works 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$75K
9.0% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
4.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $265K – $389K
- Better than avg vs category
- Liquid capital req'd
- $30K – $50K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 7.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $3K |
| Transfer fee | $5K |
| Renewal fee | $25K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $834K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Company-owned outlets Profit & Loss
- Sample size
- 2 units
- vs category median 13 · small
- Range (low → high)
- $567K→$1.1M
- Cohort dispersion (min → max)
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How TFS Burger Works Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Extremely early-stage burger concept with only 2 operating units, hidden profitability data, and unproven growth model presents significant venture risk despite protected territory.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 58 / 100 rating
- 01MEDOnly 2 existing units with unknown growth trajectory indicates extremely limited system track record and validation
- 02MEDNet income deliberately not disclosed in FDD Item 19 prevents realistic ROI analysis on $265k-$389k investment
- 03MINOR7% royalty rate on $833k average revenue ($58k annual) is heavy burden when profitability metrics are hidden
- 04MINORTiny franchisee base (2 units) creates high risk of system collapse and insufficient peer support network
- 05HIGHNo disclosed litigation but micro-scale prevents meaningful legal pattern analysis
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 | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius/Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 160 hrs
- Training location
- On-site and at franchisor location
- POS system
- Toast, Spot On, or Margin Edge Inventory
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast, Spot On, or Margin Edge Inventory
Item 20 · call current owners
Franchisee Contacts
22 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
TFS Burger Works · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a TFS Burger Works franchise?
The total investment to open a TFS Burger Works franchise ranges from $265K – $389K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do TFS Burger Works franchise owners earn?
According to Item 19 of the TFS Burger Works FDD, the average gross sales per unit is $834K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is TFS Burger Works's franchise failure rate?
SBA 7(a) loan charge-off data is not available for TFS Burger Works (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 TFS Burger Works franchise locations are there?
As of their most recent FDD filing, TFS Burger Works has 2 total units in the United States, including 0 franchised units and 2 company-owned units.
Is TFS Burger Works a good franchise to buy?
FranchiseVerdict rates TFS Burger Works as a B-grade franchise with a risk score of 58 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.