Quick Verdict · who it fits
Texas Roadhouse fits first-time franchise buyers looking for a mid-scale food & beverage concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$3.9M - $7.9M
Franchise fee (Item 5)
$40K
Royalty (Item 6)
4% + 0.3% ad
System size (Item 20)
56 +3
Agreement term
10 yrs
Model Texas Roadhouse's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Data extracted from the 2023 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Drag to your projected annual sales. Royalty 4% + ad fund 0.3% on gross sales.
PROJECTED ANNUAL SALES$500,000
$100k$2M
Royalty (4%)
—
Ad fund (0.3%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
638
Total units open
25
Units opened last year
3 franchised, 22 company-owned
17
Units closed last year
8 franchised reacquired + 1 franchised ceased operations + 8 company-owned reacquired
8
Net unit growth
What our analysis flagged across the 2023 filing.
5
Risks to review
4
Strengths identified
5
Questions to ask
How Texas Roadhouse ranks against 811 Food & Beverage peers we've analyzed.
Initial investment
99th pct · of 811 peers
Franchise fee
57th pct · of 811 peers
System size
65th pct · of 811 peers
Food & Beverage industry averages
Avg investment
$528K - $1.3M
Avg franchise fee
$38K
Avg system size
235
Franchises analyzed
811
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Texas Roadhouse | None | $40K | $3.9M - $7.9M | 4% | 56 |
| Twin RestaurantSimilar price | Disclosed | $50K | $3.0M - $7.6M | 5% | 74 |
| Doctor's AssociatesBiggest system | None | $15K | $227K - $630K | 8% | 18,773 |
| Vintage Hospitality GroupTop-rated in category | Disclosed | $50K | $3.5M - $6.4M | 5.5% | 33 |
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Free explainers to go deeper before you sign.
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Brand Analysis
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Texas Roadhouse requires a $40,000 initial franchise fee and a total initial investment range of $3,894,500–$7,901,500, per the most recent FDD on file.
Texas Roadhouse is franchised by Texas Roadhouse Development Corporation, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.
No. Texas Roadhouse does not include a financial performance representation in its FDD. Prospective buyers should rely on validation calls with existing franchisees and benchmark against industry medians.
Franchisees pay a royalty of 4% of Royalty Sales and an advertising fund contribution of 0.3% of Royalty Sales on gross sales as defined in Item 6 of the FDD.
As of their 2023 FDD, Texas Roadhouse has 56 total locations, with 3 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
Per the FDD, Texas Roadhouse discloses an initial agreement term of 10 years, a transfer fee of $3,500. Review Items 10 and 17 for the full renewal and termination provisions.
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