Bottom line
- Total investment $425K – $883K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.5M/year.
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- 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 The Red Chickz unit return on the cash you put in?
Unlevered ROIC · per unit
34%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Red Chickz units return on equity?
Equity IRR · 5-yr
37.6%
4.94× MOIC
Year-1 DSCR
2.21×
EBITDA ÷ debt service
Equity required
$4.2M
on $13.1M purchase
Total debt
$8.9M
SBA $5.0M + senior + seller note
Overview
About
The Red Chickz is a quick-service restaurant concept focused on chicken-based offerings. Franchisees operate standalone or co-branded locations, managing food preparation, customer service, inventory, and local marketing while paying 6% royalties on gross revenues. Day-to-day operations involve kitchen management, staffing, vendor relationships, and point-of-sale execution in a food-service environment.
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 · 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
Early-stage, rapidly scaling QSR concept with material profitability opacity and unproven unit economics across a micro-unit base.
Score breakdown · what drove the 53 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — impossible to validate actual profitability against $424.7K-$883.2K investment range
- 02MINOROnly 5 units system-wide with 200% YoY growth suggests explosive but unproven expansion from extremely small base (likely 1-2 units prior year)
- 03MINORHigh investment-to-revenue ratio: average unit generates $1.46M but requires $424.7K-$883.2K upfront, indicating 7-18 month payback without accounting for operating expenses
- 04MEDNo comparable unit economics disclosed — cannot determine if $1.46M average is from mature, struggling, or cherry-picked locations
- 05MEDRoyalty structure (6% + undisclosed ad fund obligations) not stress-tested against disclosed operating margins
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
29 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Red Chickz · FDD (2026) PDF