FranchiseVerdict
Wienerschnitzel logo
FV-02961·STRONGExcellent91

Wienerschnitzel

Food & Beverage - Quick ServiceFranchising since 1965Website
Investment
$519K – $2.5M
86th pct Quick Service
Avg revenue
$1.1M
29th pct Quick Service
Royalty
5.0%
14th pct Quick Service
Units
316
84th pct Quick Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $519K – $2.5M including a $40K franchise fee, 5.0% ongoing royalty.
  • Average unit revenue of $1.1M/year.
  • Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 130 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Galardi Group Franchise Corp.
Parent company
Galardi Group, Inc.
Incorporated in
California
HQ
1775 Flight Way, Suite 125, Tustin, California 92782
Auditor
Baker Tilly US, LLP
Audited financials
Franchisor revenue
$186K
vs $578K prior year

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 Wienerschnitzel unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,127,060
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: qsr
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $519K–$2.5M
Working capital
$
FDD reports $15K–$30K

Unlevered ROIC · per unit

10%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$147K
EBITDA margin
13.0%
Total invested
$1.5M
Payback
126 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Wienerschnitzel units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$1.4M

on $6.8M purchase

Total debt

$5.4M

SBA $3.4M + senior + seller note

Overview

About

Franchisees operate quick-service hot dog and sausage restaurants, managing food preparation, customer service, inventory, and staffing. Day-to-day operations focus on maintaining food quality and speed of service in a limited-menu format with high labor and food cost dependencies.

CEO
J.R. Galardi
Founded
1982
FDD year
2025
States available
12

Item 7 · what it costs

The Vitals

Total investment
$519K – $2.5M
All-in to open one unit
Liquid capital
$15K – $30K
Cash you must have on hand
Franchise fee
$40K
Royalty
5.0%
Percentage of Net Sales · typical 6–8%
Ad fund
4.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$1.1M
Per unit, per year
Median gross sales
Item 19 type
Average Sales
Sample size
240 units
vs category median 37 · large
Range (low → high)
$756K$1.6M
Cohort dispersion
Transparency
3 / 5
vs category median 4 / 5 · below
Revenue rank29th
vs Food & Beverage - Quick Service peers
Investment cost rank86th
Lower investment ranks lower (better)
Royalty rate rank14th
Lower royalty = lower percentile (better)
Unit count rank84th
vs Food & Beverage - Quick Service peers
Risk score rank9th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
316
Opened
11
Last reporting year
Closed
11
Turnover rate
3.5%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+1.3%
Net unit change last year
3-yr CAGR
+1.0%
Compounded over last 3 years
2023
316±0
Franchised units
2024
312
Franchised units
2025
313
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 12 · 12 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.

12

states with franchisees (per FDD Item 12)

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
130
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

46
Risk · 0-100
STRONG46 / 100

Wienerschnitzel presents moderate-to-caution risk: a declining unit base, missing financial transparency (no Item 19), recent litigation, and unclear unit-level profitability raise concerns despite protected territory and reasonable royalty rate.

Score breakdown · what drove the 46 / 100 rating

  1. 01MINORDeclining unit count (1.3% YoY contraction in 316-unit system indicates stagnation/shrinkage)
  2. 02MEDNo Item 19 financial performance data disclosed — cannot verify the $1.127M average revenue claim or validate unit economics
  3. 03HIGHRecent litigation (breach of contract/fraud allegations) signals potential franchisor-franchisee disputes, even though dismissed
  4. 04MINORWide investment range ($519K–$2.5M) suggests inconsistent buildout costs and unclear path to profitability
  5. 05MINORNo net income disclosure prevents ROI assessment — 5% royalty on $1.127M average revenue yields only ~$56K in gross royalties, leaving thin margins after COGS, labor, rent

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
20 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
California

Item 11

Training & Operations

Classroom training
40 hrs
On-the-job training
320 hrs
POS system
Simphony POS 19.4
Operating tech stack

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

100 numbers

Locked
(661) 718-••••
The Dallas and Kim Russell
CA
(909) 673-••••
CA
(559) 222-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

Wienerschnitzel · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above