WienerschnitzelFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Wienerschnitzel franchise requires a total initial investment of $519K – $2.5M, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.1M[2]. SBA 7(a) loans show a 23.9% charge-off rate across 83 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $519K – $2.5M
- 84th pct Service Resta…
- Avg gross sales
- $1.1M
- 38th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 316
- 85th pct Service Resta…
- SBA default
- 23.9%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.7x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
23.9% of SBA loans charged off across 83 loans, above the 16% franchise average.
Franchising since 1965. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $519K – $2.5M including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.1M/year.
- Verdict B (Above Average) with a risk score of 58/100. SBA loan charge-off rate of 23.9% across 83 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Galardi Group Franchise Corp.
- Parent company
- Galardi Group, Inc.
- Predecessor
- in the sense of someone who we acquired
- Prior franchisor entity
- CEO title
- Chief Executive Officer and President
- J.R. Galardi
- CEO experience
- 12 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 1775 Flight Way, Suite 125, Tustin, California 92782
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $186K
- vs $578K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- Tastee Freez
Other brands the franchisor or its parent operates (Item 1).
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
- Headquarters
- CA
- Founded
- 1961
- FDD year
- 2025
- States available
- 12
FDD Item 7 · 2025 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $10K | $40K | |
| Net Rent | $8K | $36K | |
| Equipment, Furniture, Furnishings, Fixtures | $8K | $300K | |
| Small wares | $4K | $7K | |
| Opening inventory | $5K | $10K | |
| Training | $0 | $15K | |
| Local Marketing at Opening | $0 | $5K | |
| Insurance | $3K | $21K | |
| Uniforms | $2K | $2K | |
| Security Deposits | $4K | $13K | |
| Real Estate Improvements | $450K | $2.0M | |
| Accountant/Lawyer | $2K | $8K | |
| Additional Funds - Three months working capital | $15K | $30K | |
| Additional investment for purchase of operating restaurant | — | — | |
| Technology Costs (Hardware) | $10K | $20K | |
| Initial Fee (Exclusive Right to Develop Agreement) | $80K | — | |
| First Franchise (Exclusive Right to Develop Agreement) | $519K | $2.5M | |
| Total initial investment | $1.1M | $5.0M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$147K
13.0% margin
Unlevered ROIC
10%
EBITDA / total invested capital
Payback
10.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $519K – $2.5M
- Below avg, review vs category
- Liquid capital req'd
- $15K – $30K
- Better than avg vs category
- Franchise fee
- $10K – $40K
- Below avg, review vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $1K |
| Training fee | $5K |
| Transfer fee | $5K |
| Renewal fee | $20K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $1.1M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Average Sales
- Sample size
- 240 units
- vs category median 28 · large
- Range (low → high)
- $756K→$1.6M
- Cohort dispersion (min → max)
- Quartile band
- $756K→$1.6M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 453 Quick-Service Restaurants brands
Revenue is only 0.7x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Quick-Service Restaurants averages
How Wienerschnitzel Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 316
- Opened
- 11
- Last reporting year
- Closed
- 11
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- 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
3-year detail · Item 20
- Transfers (3yr)
- 8
- Transfer rate
- 2.5%
- Owners selling to other franchisees
- Continuity rate
- 95.6%
- Units that stayed open
- Ceased ops
- 3.2%
- Units that stopped operating
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)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 83
- Loan volume
- $44.1M
- Median loan
- $481K
- 50th percentile
- Charge-off rate
- 23.9%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 76.1%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 36
- Defaults
- 17
Vintage analysis
Wienerschnitzel charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Wienerschnitzel's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 11 states
- Startup risk premium and job creation velocity
- 23-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 23.9% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
Litigation (Item 3)
Hooman Nissani; Playa Vista Wienerschnitzel, Inc. v. Galardi Group Franchise Corp., Galardi Group Franchise & Leasing, LLC, et al. (Superior Court of California for Orange County, No. 30-2019-01115068CU-CO-CJC, filed November 27, 2019). Alleged breach of contract and fraud by former franchisee. Dismissed February 24, 2025.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 58 / 100 rating
- 01MINORDeclining unit count (1.3% YoY contraction in 316-unit system indicates stagnation/shrinkage)
- 02MEDNo Item 19 financial performance data disclosed — cannot verify the $1.127M average revenue claim or validate unit economics
- 03HIGHRecent litigation (breach of contract/fraud allegations) signals potential franchisor-franchisee disputes, even though dismissed
- 04MINORWide investment range ($519K–$2.5M) suggests inconsistent buildout costs and unclear path to profitability
- 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
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 0.5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Orange County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
Hooman Nissani; Playa Vista Wienerschnitzel, Inc. v. Galardi Group Franchise Corp., Galardi Group Franchise & Leasing, LLC, et al. (Superior Court of California for Orange County, No. 30-2019-01115068CU-CO-CJC, filed November 27, 2019). Alleged breach of contract and fraud by former franchisee. Dismissed February 24, 2025.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 320 hrs
- Training location
- Training Restaurant
- Ongoing training
- Required
- Field support
- 320 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- POS system
- Simphony POS 19.4
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Simphony POS 19.4
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Wienerschnitzel · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Wienerschnitzel franchise?
The total investment to open a Wienerschnitzel franchise ranges from $519K – $2.5M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Wienerschnitzel franchise owners earn?
According to Item 19 of the Wienerschnitzel FDD, the average gross sales per unit is $1.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Wienerschnitzel's franchise failure rate?
Based on SBA 7(a) loan data, Wienerschnitzel has a charge-off rate of 23.9% across 83 loans, meaning 23.9% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Wienerschnitzel franchise locations are there?
As of their most recent FDD filing, Wienerschnitzel has 316 total units in the United States, including 313 franchised units and 0 company-owned units. 11 new units were opened in the latest reporting year.
Is Wienerschnitzel a good franchise to buy?
FranchiseVerdict rates Wienerschnitzel as a B-grade franchise with a risk score of 58 out of 100, 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.
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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.