TFS Burger Works
Bottom line
- Total investment $265K – $389K including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $834K/year.
- Rated MODERATE with a risk score of 63/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 TFS Burger Works unit return on the cash you put in?
Unlevered ROIC · per unit
32%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 TFS Burger Works units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $5.8M purchase
Total debt
$4.7M
SBA $2.9M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 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.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 63 / 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
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
22 numbers
One-time purchase · CSV download · Validation questions included
FDD download
TFS Burger Works · FDD (2025) PDF