Should I open or buy a Black Angus Steakhouse franchise in 2027?
Direct Answer
Probably not — unless you have a private-equity relationship with Versa Capital Management and $4-8M of equity ready, because Black Angus Steakhouse does not franchise. The chain is company-owned, operated by Black Angus Steakhouses LLC and held by Versa Capital Management Inc. since the 2009 ARG bankruptcy purchase.
There is no 2027 FDD on file, no Item 7 ranges, no Item 19 averages, because no franchise relationship is being offered. The only realistic "buy in" path is acquiring one of the ~30 remaining company units if Versa divests, which would require $3.5M to $6M per location plus working capital, with breakeven 18-36 months out and conservative Year-1 cash flow of $150K-$400K on $4M-$5M unit volumes.
Year-1 EBITDA margin runs 8-12% for legacy casual steakhouses. Most readers should pursue a LongHorn, Texas Roadhouse, or independent steakhouse instead.
The Real Numbers
Because Black Angus does not offer a Franchise Disclosure Document, the numbers below blend (a) what an acquirer of an existing company unit would face if Versa sold them, and (b) real 2027 FDD comps from the casual steakhouse category that a similarly-positioned operator would actually file.
Treat the Black Angus column as an acquisition model, not a franchise model.
| Line Item | Black Angus (Acquisition Model) | LongHorn (Darden, Non-Franchised Comp) | Texas Roadhouse (FDD 2027) | Outback (Bloomin' Brands, Non-Franchised in US) |
|---|---|---|---|---|
| Franchise fee | N/A — not franchised | N/A — corporate only | $40,000 | N/A — corporate only |
| Initial investment (Item 7 equiv.) | $3.5M-$6.0M (asset purchase + rebrand reserve) | $2.8M-$4.2M build comp | $3,894,500-$7,901,500 | $3.2M-$6.0M build comp |
| Build-out / TI | Inherited (1980s shells, often deferred maintenance $300K-$600K) | $1.6M-$2.4M | $2.2M-$4.1M | $1.8M-$3.0M |
| Kitchen equipment | Replace 40%, ~$220,000 | $280,000-$420,000 | $300,000-$520,000 | $260,000-$450,000 |
| Working capital (90 days) | $400K-$700K | $250K-$500K | $300K-$650K | $300K-$600K |
| Royalty % | N/A | N/A | 4.0% gross | N/A |
| Marketing / national ad fund | N/A (Versa-direct) | N/A | 4.8% gross | N/A |
| AUV / Item 19 equivalent | $3.8M-$5.2M (legacy unit mix) | $3.3M (Darden FY26 10-K) | ~$7.4M (Texas Roadhouse FY26 10-K) | $3.6M (Bloomin' FY26) |
| Restaurant-level EBITDA margin | 8-12% | 17-19% | 18-20% | 14-16% |
| Payback period | 5-7 years post-acquisition | 4-6 years | 3-5 years | 5-7 years |
Bottom line on the numbers: legacy Black Angus unit economics trail the leaders by 600-1,000 bps of restaurant-level margin. Versa-purchased units carry 20-year-old shells, deferred capex, and brand erosion from two prior Chapter 11s (2004 and 2009). A serious acquirer must underwrite a full remodel ($800K-$1.4M per box) on top of the purchase price.
Cite: Texas Roadhouse 2027 FDD Item 7 + Item 19; Darden FY26 10-K; Bloomin' Brands FY26 10-K; IBISWorld 72211a Premium Steak Restaurants ($8.7B U.S. Revenue 2025-26, ~0.5% CAGR).
Who Wins With This Business
Private-equity sponsors with the balance sheet to negotiate directly with Versa win, because Versa hired investment bankers in 2025 to explore a sale and is a motivated seller. Multi-unit casual operators in the five active states (California, Arizona, New Mexico, Washington, Hawaii) win when they can fold Black Angus units into existing back-office infrastructure — shared payroll, shared GM bench, shared supply chain.
Hospitality real-estate investors win because the boxes sit on prime suburban out-parcels acquired in the 1970s-80s at land-only valuations of $2M-$5M per site — the dirt is often worth more than the going-concern. Former Black Angus GMs and regional VPs who buy the brand on a management-buyout structure win because they know the recipes, the loyal 55+ guest base, and the operational quirks of the legacy POS and broiler systems.
Who Loses With This Business
First-time restaurant owners lose, because there is no franchisor support system, no training program, no brand standards manual — you would be acquiring an operating asset, not joining a franchise. Out-of-region buyers lose because Black Angus has zero brand equity east of New Mexico and rebranding costs $300K-$500K per unit alone.
Anyone underwriting to public-comp AUVs ($7.4M Texas Roadhouse, $3.3M LongHorn) loses, because Black Angus units run $3.8M-$5.2M on a good year and dropped below $3.5M during 2020-22. Buyers who skip the deferred-maintenance audit lose — the Torrance, CA unit closed in June 2025 for redevelopment specifically because the 40-year-old building was no longer economic.
Operators who do not budget $800K-$1.4M for remodel lose because the 1980s wood-and-brass interior tests 30+ points lower than Texas Roadhouse on guest-aesthetic surveys.
2027 Market Conditions
Premium-steak industry revenue sits at $8.7B (IBISWorld 72211a) for 2026-27 with a flat 0.4% CAGR through 2030 — inflation and 2025 beef tariffs compressed margins 180-220 bps. Beef wholesale prices are up 22% vs. 2024 on U.S. Cattle herd at a 75-year low (USDA July 2026 inventory: 86.7M head).
Black Angus's five-state footprint is demographically aging into its core 55-74 customer — favorable. But the 2025 closure of three units (Torrance + two unconfirmed) and the Versa banker engagement signal the chain is structurally for-sale. The broader casual-dining segment lost share to QSR and fast-casual for the 11th straight year.
Texas Roadhouse same-store sales grew 8.4% in FY26; LongHorn grew 4.1%; Outback declined 1.8%; legacy independents and Black Angus-tier brands are estimated flat-to-down 2-4%. Restaurant-grade commercial real-estate cap rates sit at 6.8-7.4% for net-leased steakhouses, meaning the out-parcel real estate alone is worth $2.8M-$4.5M at most Black Angus sites.
The 90-Day Decision Tree
- Days 1-15 — Confirm Black Angus is not franchising. Call Versa Capital Management (212-808-2900) and Black Angus corporate (818-840-3600). Get written confirmation of franchise status. If they pivot you to "we are exploring strategic alternatives," that is the 2025 banker process.
- Days 16-30 — Identify the acquisition path. Decide if you are bidding on (a) a single unit, (b) a regional cluster (e.g., the 12 California units), or (c) the whole 30-unit portfolio. Engage a restaurant-M&A banker — Cypress Group, North Point, Aaron Allen & Associates.
- Days 31-45 — Underwrite the real numbers. Pull state liquor-license sales reports for each target unit (CA ABC, AZ DLLC). Build a per-unit model using $3.8M-$5.2M AUV and 8-12% restaurant-level EBITDA.
- Days 46-60 — Site-walk every target. Audit HVAC, broiler, walk-in cooler, roof, parking-lot resurface on each site. Budget $300K-$600K per box in deferred maintenance plus $800K-$1.4M for a full remodel if you want to compete with LongHorn.
- Days 61-75 — Run the parallel franchise path. Simultaneously request the Texas Roadhouse 2027 FDD, the Outback corporate-operator program, and 3 independent-steakhouse business plans. Compare 5-year IRR.
- Days 76-90 — Decide and submit LOI or walk. If the Versa deal IRR clears 18% post-remodel, submit LOI. If not, commit to Texas Roadhouse FDD (requires $800K net worth, $500K liquid) or open an independent at $500K-$1.2M total cost.
Alternative Plays
Texas Roadhouse FDD (2027) — $3,894,500-$7,901,500 Item 7, $40,000 franchise fee, 4% royalty + 4.8% marketing, AUV ~$7.4M, net worth $800K / liquid $500K required. Best ROI in casual steakhouse. LongHorn corporate-operator program — Darden does not franchise domestically; international franchise via Darden International.
$3.3M AUV per unit. Outback Steakhouse — Bloomin' Brands does not franchise new U.S. Units; **existing 105 U.S.
Franchisees are legacy ARG-era. International franchise available. Brazilian-steakhouse independent (Fogo-style) — $2.5M-$3.5M build, $5M-$8M AUV at maturity, 15-18% EBITDA**.
Independent neighborhood steakhouse — $500K-$1.2M build, $1.8M-$3.2M AUV, 10-14% EBITDA, highest control / highest operator-risk. STK / The ONE Group franchise — $3M-$6M build, 5-7% royalty, higher-end urban concept.
FAQ
Can I buy a Black Angus Steakhouse franchise in 2027?
No franchise is offered. Black Angus Steakhouses LLC is company-owned by Versa Capital Management since March 2009. There is no Franchise Disclosure Document on file with any state franchise regulator, no Item 7 startup-cost range, and no Item 19 financial performance representation.
The only ownership path is acquiring an existing company-operated unit if Versa divests, which requires $3.5M-$6M of equity per unit and a direct relationship with Versa or their investment bankers. Most prospective steakhouse operators should pursue Texas Roadhouse or an independent concept.
Is Black Angus going out of business in 2027?
Not officially, but the structural signals are negative. Versa hired investment bankers in late 2025 to explore a sale of the chain. Three units closed in 2025 including the Torrance, CA location (June 2025) cited for redevelopment.
Unit count dropped from 32 to 30 year-over-year. The brand has filed Chapter 11 twice (2004 ARG and 2009 ARG). Industry analysts at Restaurant Business Online named Black Angus on their watch list for potential 2026-27 distress.
What was Black Angus's bankruptcy history?
Two filings. First, 2004 Chapter 11 by parent American Restaurant Group. Second, January 15, 2009 Chapter 11 by ARG, with Versa Capital Management acquiring the chain in March 2009 out of the bankruptcy estate. The chain has now operated under Versa private-equity ownership for 17 years, the longest period of consistent ownership in its history.
Lincoln International advised on the 2014 refinancing of Black Angus debt under Versa.
How does Black Angus compare to Texas Roadhouse on unit economics?
Texas Roadhouse runs about 600-1,000 bps higher on restaurant-level EBITDA. Texas Roadhouse FY26 AUV was approximately $7.4M with 18-20% restaurant-level margin. Black Angus AUV is estimated at $3.8M-$5.2M with 8-12% margin, reflecting older guest demographic, dated buildings, smaller marketing budget, and weaker beef supply leverage.
On a per-unit free-cash-flow basis, Texas Roadhouse generates roughly 4x Black Angus's cash flow at a comparable real-estate footprint.
Should I open an independent steakhouse instead?
Yes — for most readers, this is the better path. An independent neighborhood steakhouse runs $500K-$1.2M total startup (versus $3.5M-$6M for a Black Angus acquisition), reaches breakeven in 8-14 months (versus 18-36), and gives you full control of menu, real estate, and brand.
AUV targets $1.8M-$3.2M with 10-14% EBITDA margin. The trade-off is no brand recognition and no operational playbook, but the capital efficiency and IRR generally beat both the Black Angus acquisition and a Texas Roadhouse FDD for a first-time operator.
Bottom Line
Black Angus is not a franchise opportunity in 2027. It is a 30-unit, private-equity-held, for-sale-via-bankers operating asset. The only realistic path to ownership is negotiating directly with Versa Capital Management at a $3.5M-$6M per-unit equity check, plus $800K-$1.4M of post-close remodel capex, against a Year-1 EBITDA of $150K-$400K per unit.
Most prospective steakhouse operators should walk away and pursue Texas Roadhouse ($3.9M-$7.9M Item 7, $7.4M AUV, 4% royalty + 4.8% marketing), an independent neighborhood concept ($500K-$1.2M, full control), or a Brazilian Fogo-style independent ($2.5M-$3.5M, $5M-$8M AUV).
Only PE sponsors, multi-unit casual operators in CA/AZ/NM/WA/HI, hospitality real-estate investors, and former Black Angus operators should pursue the acquisition route. Everyone else: the FDD math on a real franchise is materially better than the going-concern math on a 1980s-era chain in PE-driven runoff.
Sources
- Black Angus Steakhouse Wikipedia entry (current 30-unit count, 2009 Versa acquisition, ARG Chapter 11 history)
- Versa Capital Management portfolio page — Black Angus Steakhouse holding period and 2014 refinancing (advised by Lincoln International)
- Tasting Table — "Whatever Happened To Black Angus Steakhouse?" 2025 retrospective on store closures and Versa banker engagement
- Restaurant Business Online — 2025 distress watch list including Black Angus
- Texas Roadhouse 2027 Franchise Disclosure Document, Items 5, 6, 7, and 19 (FranchiseHelp + Vetted Biz + FranchisePayback summaries)
- Darden Restaurants FY26 Form 10-K (LongHorn $3.3M AUV; non-franchised domestic model)
- Bloomin' Brands FY26 Form 10-K (Outback $3.6M AUV; legacy franchisee base only)
- IBISWorld 72211a Premium Steak Restaurants in the U.S. — $8.7B industry revenue, 0.4% CAGR
- USDA July 2026 Cattle Inventory Report — 86.7M head, 75-year low; beef wholesale +22% vs. 2024
- Sharpsheets — Texas Roadhouse Franchise FDD, Profits & Costs (2027 update)
- FoodBeast / Beef Magazine — ARG/Black Angus Chapter 11 historical filings (2004 and 2009)
- Aaron Allen & Associates — Restaurant EBITDA comparison of U.S. Public companies (casual steakhouse benchmarks)