The Yellow Chilli
Bottom line
- Total investment $238K – $977K including a $75K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 70/100.
- 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 The Yellow Chilli unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Overview
About
The Yellow Chilli is an Indian casual dining franchise where franchisees operate restaurant locations serving Indian cuisine. Day-to-day operations involve managing kitchen staff, sourcing ingredients, managing front-of-house service, maintaining consistency with brand standards, and handling P&L while paying 6-7.5% royalties to the franchisor.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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
Micro-brand with litigation history, regulatory penalties, zero financial transparency, unprotected territory, and stagnant unit growth presents high abandonment and profitability risk.
Score breakdown · what drove the 70 / 100 rating
- 01MINOROnly 5 operating units with unknown growth trajectory suggests stagnant or declining system
- 02HIGHLitigation history: Rs. 1 crore (~$120k) settlement for unfair franchise sales practices plus California regulatory penalty indicates systemic compliance issues
- 03MEDNo financial disclosure (average revenue/net income) prevents ROI validation; franchise fee of $75k with 6-7.5% royalties on undisclosed sales creates opacity
- 04MINORUnprotected territory exposes franchisees to brand cannibalization and direct competition from other franchisees
- 05MINORHigh investment range ($238k-$977k) with minimal unit count suggests poor unit economics or high capital requirements without proven returns
- 06HIGH10-year term locks franchisees into relationship with franchisor with litigation history
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
10 numbers
One-time purchase · CSV download · Validation questions included