The Habit Burger Grill
Bottom line
- Total investment $1.0M – $2.9M including a $35K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $1.8M/year (median $1.8M).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- System growing at 17.3% CAGR over 3 years with 377 total units — strong expansion trajectory.
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 The Habit Burger Grill unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Habit Burger Grill units return on equity?
Equity IRR · 5-yr
33.8%
4.29× MOIC
Year-1 DSCR
2.40×
EBITDA ÷ debt service
Equity required
$5.7M
on $15.3M purchase
Total debt
$9.6M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate fast-casual burger restaurants featuring charburgers, fresh ingredients, and limited menus. Day-to-day operations include managing kitchen/counter staff, inventory procurement, food preparation, customer service, and local marketing to drive traffic and maintain Habit's $1.8M average unit volume.
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 · 11 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
Mature QSR franchise with solid average unit volumes but opaque profitability, unprotected territories, and slow growth — requires thorough franchisee reference validation before committing $1M+ capital.
Score breakdown · what drove the 52 / 100 rating
- 01MEDNet income not disclosed in Item 19 — unable to assess actual profitability or ROI timeline
- 02MINORUnprotected territory creates direct competition risk and customer cannibalization within same market
- 03MINORSlow unit growth (3.4% YoY) suggests market saturation or franchisee dissatisfaction in mature system
- 04MINORHigh investment range ($1M–$2.9M) with 5.5% royalty requires $99K–$157K annual royalties at average revenue before profitability analysis
- 05MINOR10-year term is longer than QSR industry standard (typically 5–7 years), limiting exit flexibility
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
69 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Habit Burger Grill · FDD (2025) PDF