The Yellow Chilli Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
The Yellow Chilli is an Indian restaurant franchise, from celebrity chef Sanjeev Kapoor, serving regional Indian cuisine. Franchisees run the restaurants, managing the kitchen, dining service, and staffing.
FranchiseVerdict summary · 2026
A The Yellow Chilli franchise requires a total initial investment of $238K – $977K, including a $75K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $238K – $977K
- 9th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 24th pct Service Resta…
- Units
- 5
- 8th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $238K – $977K including a $75K franchise fee, 6.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict C (Average), verdict score 49/100 (higher is better).
- FLAGAuditor 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
Corporate structure & franchisor financials
- Legal entity
- SK Restaurants Pvt. Ltd.
- CEO title
- Founder and Chairman
- Sanjeev Kapoor
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- India
- HQ
- C-18 Dalia Estate, Near Fun Republic, Andheri Link Road, Andheri (W), Mumbai, India 400053
- Auditor
- Stalwart CPA Services LLC
- Audited financials
- Franchisor revenue
- $320K
- vs $387K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
- CEO
- Sanjeev Kapoor
- FDD year
- 2025
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 48% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $75K | $75K |
| Working capital (3–6 mo) | $75K | $100K |
| Equipment, build-out, other | $88K | $802K |
| Total initial investment | $238K | $977K |
Source: The Yellow Chilli 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $238K – $977K
- Top 40% of category vs category
- Liquid capital req'd
- $75K – $100K
- Top 40% of category vs category
- Franchise fee
- $75K – $75K
- Top 40% of category vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $300 |
| Training fee | $12K |
| Transfer fee | $38K |
| Renewal fee | $38K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
The Yellow Chilli did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one The Yellow Chilli unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
12%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Full-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants averages
How The Yellow Chilli Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 100.0%
- Units that stayed open
No multi-year history disclosed and no opening/closing activity in the last reporting year.
Item 12 · 3 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
3
states with franchisees (per FDD Item 12)
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.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
⚠ Grade capped at C: the auditor disclosed a going-concern note (FDD Item 21). The verdict score reflects the underlying financials before that cap.
Two litigation matters including a 2020 California DBO consent order for offering unregistered franchises ($15,000 penalty paid) plus a settled franchisee arbitration. No Item 19 disclosure and only 5 units with flat growth. No bankruptcy or going-concern, but the regulatory consent order plus missing earnings disclosure stack multiple concerns for a very small system.
Litigation (Item 3)
Mormukut Inn Pvt. Ltd. (Franchisee) v. S.K. Restaurants Pvt. Ltd. (Franchisor): Three cases filed in 2015-2016 (Arbitration Case No. 400/2015 at District Court Agra; Arbitration Case No. 99/2015 at High Court Allahabad; Case No. 1101/2016 at Court of CJM Agra) alleging unfair acts in franchise offer/sale. Settled November 14, 2016 with franchise termination, withdrawal of all cases, and Rs. 1,00,00,000 payment to Franchisee. California Department of Business Oversight administrative action (Consent Order ID: 213620, May 7, 2020): Franchisor offered franchises in California via 'Letter of Intent' and 'Interim Franchise Agreement' documents (Feb 2016-Jan 2018) to three entities without proper franchise registration or FDD disclosure in violation of California Corporations Code sections 31110 and 31119. Resolved via Consent Order with $15,000 penalty and requirement to serve updated FDD and rescission offer to affected franchisees; all three declined rescission.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Stalwart CPA Services LLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 49 / 100 verdict
- 01MINORCalifornia DBO consent order (2020), unregistered franchises
- 02MINORSettled franchisee arbitration (Rs.1 crore paid 2016)
- 03MINORNo Item 19 disclosure
- 04MINORSmall system: 5 units, flat growth
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Mumbai, India |
| Jury trial waiver | Yes |
| Governing law | Republic of India |
| Litigation count | 2 |
View Item 3 litigation summary
Mormukut Inn Pvt. Ltd. (Franchisee) v. S.K. Restaurants Pvt. Ltd. (Franchisor): Three cases filed in 2015-2016 (Arbitration Case No. 400/2015 at District Court Agra; Arbitration Case No. 99/2015 at High Court Allahabad; Case No. 1101/2016 at Court of CJM Agra) alleging unfair acts in franchise offer/sale. Settled November 14, 2016 with franchise termination, withdrawal of all cases, and Rs. 1,00,00,000 payment to Franchisee. California Department of Business Oversight administrative action (Consent Order ID: 213620, May 7, 2020): Franchisor offered franchises in California via 'Letter of Intent' and 'Interim Franchise Agreement' documents (Feb 2016-Jan 2018) to three entities without proper franchise registration or FDD disclosure in violation of California Corporations Code sections 31110 and 31119. Resolved via Consent Order with $15,000 penalty and requirement to serve updated FDD and rescission offer to affected franchisees; all three declined rescission.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 96 hrs
- Training location
- At your restaurant and/or virtual
- Ongoing training
- Required
- Field support
- 96 hrs/yr
- On-site visits per year
- POS system
- approved POS system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: approved POS system
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Yellow Chilli · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Yellow Chilli franchise?
The total investment to open a The Yellow Chilli franchise ranges from $238K – $977K, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Yellow Chilli franchise owners earn?
The Yellow Chilli does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the The Yellow Chilli FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the The Yellow Chilli FDD and qualifies whose outlets they describe.
What is The Yellow Chilli's franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Yellow Chilli (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 The Yellow Chilli franchise locations are there?
As of their most recent FDD filing, The Yellow Chilli has 5 total units in the United States, including 5 franchised units and 0 company-owned units.
Is The Yellow Chilli a good franchise to buy?
FranchiseVerdict rates The Yellow Chilli as a C-grade franchise with a verdict score of 49 out of 100 (higher is better), 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.
For franchisors
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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.