Should I open or buy a Mooyah franchise in 2027?

👁 0 views📖 2,484 words⏱ 11 min read📅 Published Jun 4, 2026

Direct Answer

Probably not — unless you have $500,000-$900,000 in liquid capital, an A-list end-cap real estate deal in a high-traffic suburban market, and prior multi-unit restaurant operating experience. Mooyah is a 76-unit better-burger franchise with $1,016,330 average gross sales (2024 FDD Item 19), a $372,525-$1,186,124 total startup cost range (Item 7), a $40,000 franchise fee, and 6% royalty plus 2% national marketing.

Real-world franchisee EBITDA lands in the $100,000-$160,000 band at average volume — a 12-15% margin before debt service. Payback runs 5-8 years on a single store at $600K-$800K all-in. The better-burger segment is growing under 1% in 2026, beef costs are up 32% since 2023, and BurgerFi declared bankruptcy in 2024.

This is a viable operator-led investment, not a passive one.

The Real Numbers

The 2025 Mooyah FDD (covering 2024 performance) is the most current public document; the 2026 FDD registers in spring with state regulators and refreshes these figures by April-May 2027. The numbers below come from Item 7 (estimated initial investment), Item 19 (financial performance representation), and Mooyah's franchise.mooyah.com disclosures, cross-checked against Franchise Chatter, Vetted Biz, Sharpsheets, and 1851 Franchise independent FDD reviews.

Line Item	Low	High	Notes
Initial franchise fee	$40,000	$40,000	Single-unit; multi-unit discounts for 3-10 store deals
Real estate / lease deposits	$5,000	$35,000	First/last month plus security
Leasehold improvements / build-out	$175,000	$675,000	1,800-2,400 sq ft end-cap inline; biggest variance line
Equipment, furniture, signage	$115,000	$235,000	Vulcan grills, Taylor shake machines, POS
Architect / engineering	$15,000	$35,000	Stamped drawings for permitting
Pre-opening training, travel	$5,000	$15,000	4-6 weeks at Plano, TX HQ + in-store
Initial inventory + smallwares	$12,000	$22,000	Beef, buns, paper goods, kitchen tools
Insurance, deposits, licenses	$3,500	$19,000	GL, workers comp, liquor (if applicable)
Additional funds — 3 months	$25,000	$70,000	Working capital to breakeven
TOTAL initial investment	$372,525	$1,186,124	Per Item 7 of 2025 FDD

Ongoing fees stack on top of the build-out. The standard royalty is 6% of gross sales, paid weekly. Brand marketing fund is 2% of gross sales (some operators report 3% in legacy agreements).

Mooyah introduced a 2026 incentive: 4% royalty in year one, 5% in year two, 6% from year three on — but only for multi-unit operators signing 3-10 store development agreements. Single-unit operators pay full freight from day one.

Revenue and profit reality (2024 FDD Item 19 data, 65 traditional franchised locations open the entire measurement period):

Performance Quartile	Avg Gross Sales	Estimated EBITDA	EBITDA Margin
Top 25%	$1,475,123	$215,000-$295,000	14.5-20%
System average	$1,016,330	$125,000-$160,000	12-15.5%
Median	$945,000	$110,000-$140,000	11.5-14.5%
Bottom 25%	$625,000	$35,000-$65,000	5.5-10.5%

Industry benchmarks for fast-casual better-burger from IBISWorld (Burger Restaurants in the US, 2026 report), the National Restaurant Association, and Technomic put prime cost (food + labor) at 62-66% of revenue. Beef inflation of 32% since 2023 (per Datassential) versus burger menu price inflation of only 14% has compressed margins 3-5 percentage points sector-wide.

Payback at average volume runs 5-8 years; top-quartile operators hit payback in 3.5-5 years; bottom-quartile stores rarely return capital and often close before lease expiry.

flowchart TD A[Total Investment $372K-$1.18M] --> B[Year 1 Gross Sales $625K-$1.47M] B --> C[Prime Cost 62-66%] B --> D[Royalty 6% + Marketing 2%] B --> E[Rent + Utilities 8-11%] C --> F[Operating EBITDA $35K-$295K] D --> F E --> F F --> G{Debt Service<br/>SBA 7a Loan} G -->|Top 25%| H[Cash Flow Positive Year 1] G -->|Average| I[Breakeven Months 14-22] G -->|Bottom 25%| J[Owner Salary Below $40K]

Who Wins With This Business

Multi-unit restaurant operators with 2-5 existing franchise units in non-competing concepts win consistently. They have existing GMs to redeploy, vendor relationships, a payroll/accounting back office, and bank relationships for SBA 7(a) loans. The 2026 royalty incentive (4% year one, scaling to 6%) makes the multi-unit math work: signing a 3-pack development agreement saves roughly $30,000-$45,000 in royalties per store across years 1-2, which materially shortens payback.

Owner-operators with $300,000+ liquid capital, $800,000 net worth, 15+ years of food-service operating experience, and an A-grade end-cap retail site at $30-$42 per square foot triple-net rent are the second winning profile. Texas and Sunbelt operators — Mooyah is headquartered in Plano, Texas, and the brand over-indexes in DFW, Austin, Houston, and suburban Atlanta, where brand recognition cuts customer acquisition cost by 35-45% versus cold markets.

Who Loses With This Business

First-time absentee investors lose. The bottom-quartile $625K average gross sales scenario produces $35K-$65K EBITDA — before debt service. An SBA 7(a) loan on a $700,000 buildout at 10.5% over 10 years costs roughly $112,000 per year in debt service, which exceeds bottom-quartile EBITDA outright.

Suburban Northeast and California operators face build-out costs at the high end of Item 7 ($900K-$1.18M) because of prevailing-wage requirements, permitting delays of 5-9 months, and rent above $50/sq ft. Single-unit operators who skip the multi-unit royalty incentive pay full 6% royalty plus 2% marketing from week one — that 8% gross-sales tax at average volume of $1.01M is $81,300 per year off the top.

Operators chasing the better-burger segment without differentiation lose to Five Guys, Shake Shack, In-N-Out, Smashburger, Habit Burger, and Whataburger, all of which have deeper brand awareness and higher unit volumes.

2027 Market Conditions

Better-burger fast-casual is the toughest restaurant segment to enter in 2027. Burger and sandwich QSR segments are projected to grow under 0.5% in 2026 per Technomic, down from 1% in 2025. Beef prices are 32% above January 2023 levels per Datassential, while menu prices have only risen 14% at full-service and 16% at limited-service — a 15-18 percentage-point margin gap the industry is still absorbing.

The USDA cattle herd hit a 73-year low in early 2026, and herd rebuilding takes 4-7 years, so beef cost relief is unlikely before 2029. BurgerFi declared bankruptcy in September 2024. Shake Shack has slowed new unit openings to 40-45 per year (down from 75+ in 2022).

Habit Burger parent Yum Brands has signaled it may divest the chain. Mooyah's 2024 same-store sales rose 5.4% with 2.3% traffic growth — meaningful outperformance, but on a low base of 76 units across 21 states. Labor cost pressure continues: California's $20 fast-food minimum wage took effect April 2024, New York raised tipped-worker wages 14% in January 2026, and federal overtime threshold rose to $58,656 in January 2025.

The 2026 royalty incentive (4% year-one, scaling to 6%) is a clear signal that Mooyah corporate needs unit growth and is willing to subsidize the early years to get it — favorable to franchisees willing to commit to 3+ stores.

flowchart LR A[Beef Cost +32% since 2023] --> B[Prime Cost 64-66%] C[Menu Price +14% only] --> B B --> D[Margin Compression 3-5pp] D --> E{Operator Response} E --> F[Multi-unit Royalty<br/>Incentive 4-5-6%] E --> G[Smaller Footprint<br/>1800 sqft Inline] E --> H[Catering + Delivery<br/>30-40% of Sales] F --> I[2027 Viable Path] G --> I H --> I

The 90-Day Decision Tree

Days 1-10 — Capital and credit verification. Pull personal credit; confirm FICO 720+. Document liquid capital of $300,000+ and net worth of $800,000+. Pre-qualify with two SBA 7(a) preferred lenders (Live Oak, Celtic, ReadyCap) for a $500,000-$900,000 facility at projected 9.5-11% rate. If you cannot document these floors, stop here — Mooyah will not approve the application.
Days 11-25 — FDD request and read. Submit a franchise inquiry at franchise.mooyah.com. Mooyah ships the 2026 FDD (registered with state regulators) within 5-7 business days. Read every word of Items 7, 19, 20, and 21. Item 20 lists closed/transferred/terminated stores by name — call 5 of those former operators directly. They will tell you the truth.
Days 26-45 — Active-franchisee validation calls. Call 15-20 current Mooyah franchisees from the Item 20 list. Ask the five questions that matter: (a) actual gross sales versus FDD average, (b) prime cost percentage, (c) hours worked per week, (d) would they sign again, (e) what surprised them. Spend 3 hours minimum on validation.
Days 46-60 — Market and site analysis. Order a Buxton or eSite Analytics trade-area study ($3,500-$6,500). Mooyah's ideal trade area is 25,000+ daytime population, $75,000+ median household income, 40,000+ vehicles per day, end-cap with patio. Walk 8-12 potential sites with a commercial broker — CBRE, JLL, or a regional retail specialist.
Days 61-75 — Discovery Day and legal review. Attend Discovery Day at Plano, TX HQ (2 days). Engage a franchise attorney ($3,500-$6,500 flat fee) to redline the Franchise Agreement. Negotiate: territory protection, renewal terms, transfer rights, post-term covenants, and the 2026 royalty incentive if signing multi-unit.
Days 76-90 — Decision and deposit OR walk. If validation calls reported $950K+ average sales, prime cost under 65%, and 8+ of 15 operators said they would sign again — sign the Franchise Agreement and wire the $40,000 fee. If any of those tripwires failed — walk away and apply your capital to a better-economics concept (see Alternative Plays).

Alternative Plays

If the better-burger thesis appeals but Mooyah does not, consider these. Five Guys (private, 1,500+ units, $1.4M-$1.6M AUV, higher franchise fee at $25K-$80K but no royalty incentive needed). Smashburger (Privately owned by Jollibee Foods, 220 units, $1.0M-$1.1M AUV, 6% royalty + 2.5% marketing, more flexible footprint).

Wayback Burgers (170+ units, lower investment at $278K-$700K, $793K AUV). Buying an existing Mooyah via the resale market at 3-4× SDE ($300K-$500K) avoids build-out risk and gives proven sales history — check Mooyah's franchise resale listings and Restaurant Brokers Network.

If the goal is restaurant cash flow rather than the burger thesis, the better economics in 2027 are in chicken — Slim Chickens ($1.5M AUV, growing 15% YoY), Bojangles ($1.8M AUV), or Dave's Hot Chicken ($2.1M AUV, the fastest-growing chicken franchise in QSR history).

Chicken margins beat beef margins by 4-7 percentage points in 2026 because chicken commodity prices are flat year-over-year while beef is at record highs.

FAQ

Is Mooyah profitable for a single-unit owner-operator?

At $1,016,330 system-average gross sales, a single-unit owner-operator clears $125,000-$160,000 in EBITDA before debt service. After a $700,000 SBA 7(a) loan at 10.5% over 10 years ($112K/yr in debt service), take-home is $13,000-$48,000 in year one — below median household income.

The economics work for owner-operators only at above-average volume ($1.15M+) or with lower debt load ($350K-$450K total investment). Single-unit Mooyah is best treated as a first store toward a 3-pack, not a destination.

How does Mooyah compare to Five Guys financially?

Five Guys wins on unit volume ($1.4M-$1.6M AUV versus Mooyah's $1.0M) but loses on investment efficiency — Five Guys' Item 7 ranges $306K-$926K, comparable to Mooyah. Five Guys takes 4% royalty + 2% marketing versus Mooyah's 6% + 2%, meaning Five Guys franchisees keep $20,000-$28,000 more per store per year in royalties.

Five Guys' resale market is tighter (higher multiples, fewer listings). Choose Mooyah if you want a smaller, faster-moving system and the 2026 royalty incentive; choose Five Guys for proven $1.4M+ volumes.

What kills a Mooyah franchise?

Three failure modes dominate. Bad real estate (low-traffic strip centers, no patio, weak end-cap visibility) cuts gross sales 25-40% versus FDD average. Inexperienced operators who try to absentee-manage burn through working capital in 6-9 months.

Over-leveraged builds ($900K+ on a market that supports $850K AUV) make debt service the killer — the Item 19 bottom quartile is dominated by over-built, over-leveraged stores.

Can I finance a Mooyah with an SBA 7(a) loan?

Yes. Mooyah is on the SBA Franchise Directory, so SBA 7(a) loans up to $5 million are available through preferred lenders (Live Oak Bank, Celtic Bank, ReadyCap, Newtek). Typical structure: 20-25% equity injection, 10-year term, prime + 2.75-3.0% (currently 10.5-11%).

SBA 504 is also available for the real estate portion if you own the building. Expect 60-90 days from application to funding with a strong package.

Should I buy an existing Mooyah or open new?

Buy existing if you find a store with 2+ years of operating history, $900K+ trailing 12-month sales, clean lease with 5+ years remaining, and a 3.0-3.5× SDE multiple. Open new if you have an A-grade real estate site Mooyah corporate has not yet approved, you want fresh equipment with full warranties, and you can commit to the 2026 multi-unit royalty incentive.

Resale economics usually win for single-unit operators; new-build economics win for 3-pack developers using the incentive.

Bottom Line

Mooyah is a viable franchise for the right operator profile and a capital-destroying choice for the wrong one. The 2026 royalty incentive (4-5-6% step-up over three years) materially improves the multi-unit math and is the strongest signal Mooyah corporate has sent in years.

Single-unit, first-time, absentee owners should walk; multi-unit restaurant operators with $500K-$900K liquid, A-grade real estate, and Sunbelt geography should run the 90-day decision tree and likely sign. Average gross sales of $1.016M with 12-15% EBITDA margin clears the operator-led franchise investment bar at $600K-$800K all-in, but only with disciplined site selection and prime cost held under 65%.

Beef inflation, segment stagnation, and BurgerFi-style competitor failures are real risks priced into the deal. Buy existing at 3.0-3.5× SDE if a clean resale appears in your market — that is the highest risk-adjusted return path in the Mooyah system today.

Sources

Franchise Chatter — MOOYAH Franchise Review 2025: Costs, Fees, Average Revenues and/or Profits (August 2025)
Mooyah Franchising LLC — 2025 Franchise Disclosure Document, Item 7 and Item 19
Vetted Biz — Mooyah Franchise Insights: FDD, Costs & Fees (2026 update)
Sharpsheets — MOOYAH Burgers, Fries & Shakes Franchise FDD, Profits & Costs (2025)
1851 Franchise — How Much Does It Cost To Open a MOOYAH Franchise?
QSR Magazine — MOOYAH Offers New Franchise Incentive for Multi-Unit Operators (2025)
QSR Magazine — Restaurant Outlook for 2026: Leaders Take Share, and Searching for a Spark
Datassential — Burger Prices Up 14% Since 2023 While Beef Costs Surge 32% (2026 analysis)
Restaurant Dive — Beef costs exceed burger prices, pressuring QSRs (2026)
IBISWorld — Burger Restaurants in the US Industry Report (2026 edition)
National Restaurant Association — 2026 State of the Restaurant Industry Report
Bisnow — Mooyah Burgers Targets Expansion Amid Industry Challenges (2025)
SBA Franchise Directory — MOOYAH Franchising LLC (active, 2026)

Keep reading

## Direct Answer

**Probably not — unless** you have **$500,000-$900,000 in liquid capital**, an A-list end-cap real estate deal in a high-traffic suburban market, and prior **multi-unit restaurant operating experience**. **Mooyah** is a 76-unit better-burger franchise with **$1,016,330 average gross sales** (2024 FDD Item 19), a **$372,525-$1,186,124 total startup cost range** (Item 7), a **$40,000 franchise fee**, and **6% royalty plus 2% national marketing**. Real-world franchisee EBITDA lands in the **$100,000-$160,000 band** at average volume — a **12-15% margin** before debt service. **Payback runs 5-8 years** on a single store at $600K-$800K all-in. The better-burger segment is **growing under 1% in 2026**, beef costs are up **32% since 2023**, and **BurgerFi declared bankruptcy in 2024**. This is a **viable operator-led** investment, not a passive one.

## The Real Numbers

The **2025 Mooyah FDD** (covering 2024 performance) is the most current public document; the **2026 FDD** registers in spring with state regulators and refreshes these figures by **April-May 2027**. The numbers below come from **Item 7** (estimated initial investment), **Item 19** (financial performance representation), and Mooyah's **franchise.mooyah.com** disclosures, cross-checked against **Franchise Chatter**, **Vetted Biz**, **Sharpsheets**, and **1851 Franchise** independent FDD reviews.

| Line Item | Low | High | Notes |
|---|---|---|---|
| **Initial franchise fee** | $40,000 | $40,000 | Single-unit; **multi-unit discounts** for 3-10 store deals |
| **Real estate / lease deposits** | $5,000 | $35,000 | First/last month plus security |
| **Leasehold improvements / build-out** | $175,000 | $675,000 | **1,800-2,400 sq ft** end-cap inline; biggest variance line |
| **Equipment, furniture, signage** | $115,000 | $235,000 | Vulcan grills, Taylor shake machines, **POS** |
| **Architect / engineering** | $15,000 | $35,000 | Stamped drawings for permitting |
| **Pre-opening training, travel** | $5,000 | $15,000 | **4-6 weeks** at Plano, TX HQ + in-store |
| **Initial inventory + smallwares** | $12,000 | $22,000 | Beef, buns, paper goods, kitchen tools |
| **Insurance, deposits, licenses** | $3,500 | $19,000 | GL, workers comp, liquor (if applicable) |
| **Additional funds — 3 months** | $25,000 | $70,000 | **Working capital** to breakeven |
| **TOTAL initial investment** | **$372,525** | **$1,186,124** | Per **Item 7** of 2025 FDD |

**Ongoing fees** stack on top of the build-out. The standard **royalty is 6% of gross sales**, paid weekly. **Brand marketing fund** is **2% of gross sales** (some operators report **3%** in legacy agreements). Mooyah introduced a **2026 incentive**: **4% royalty in year one**, **5% in year two**, **6% from year three on** — but only for multi-unit operators signing **3-10 store development agreements**. Single-unit operators pay full freight from day one.

**Revenue and profit reality** (2024 FDD Item 19 data, 65 traditional franchised locations open the entire measurement period):

| Performance Quartile | Avg Gross Sales | Estimated EBITDA | EBITDA Margin |
|---|---|---|---|
| **Top 25%** | $1,475,123 | $215,000-$295,000 | **14.5-20%** |
| **System average** | $1,016,330 | $125,000-$160,000 | **12-15.5%** |
| **Median** | $945,000 | $110,000-$140,000 | **11.5-14.5%** |
| **Bottom 25%** | $625,000 | $35,000-$65,000 | **5.5-10.5%** |

**Industry benchmarks** for fast-casual better-burger from **IBISWorld** (Burger Restaurants in the US, 2026 report), the **National Restaurant Association**, and **Technomic** put **prime cost (food + labor)** at **62-66%** of revenue. **Beef inflation of 32% since 2023** (per **Datassential**) versus burger menu price inflation of only **14%** has compressed margins **3-5 percentage points** sector-wide. **Payback at average volume runs 5-8 years**; **top-quartile operators hit payback in 3.5-5 years**; **bottom-quartile stores rarely return capital** and often close before lease expiry.

```mermaid
flowchart TD
    A[Total Investment $372K-$1.18M] --> B[Year 1 Gross Sales $625K-$1.47M]
    B --> C[Prime Cost 62-66%]
    B --> D[Royalty 6% + Marketing 2%]
    B --> E[Rent + Utilities 8-11%]
    C --> F[Operating EBITDA $35K-$295K]
    D --> F
    E --> F
    F --> G{Debt Service<br/>SBA 7a Loan}
    G -->|Top 25%| H[Cash Flow Positive Year 1]
    G -->|Average| I[Breakeven Months 14-22]
    G -->|Bottom 25%| J[Owner Salary Below $40K]
```

## Who Wins With This Business

**Multi-unit restaurant operators** with **2-5 existing franchise units** in **non-competing concepts** win consistently. They have **existing GMs to redeploy**, **vendor relationships**, **a payroll/accounting back office**, and **bank relationships for SBA 7(a) loans**. The **2026 royalty incentive** (4% year one, scaling to 6%) makes the **multi-unit math work**: signing a **3-pack development agreement** saves roughly **$30,000-$45,000 in royalties per store across years 1-2**, which materially shortens payback. **Owner-operators** with **$300,000+ liquid capital**, **$800,000 net worth**, **15+ years of food-service operating experience**, and an **A-grade end-cap retail site** at **$30-$42 per square foot** triple-net rent are the second winning profile. **Texas and Sunbelt operators** — Mooyah is headquartered in **Plano, Texas**, and the brand over-indexes in **DFW**, **Austin**, **Houston**, and **suburban Atlanta**, where **brand recognition cuts customer acquisition cost by 35-45%** versus cold markets.

## Who Loses With This Business

**First-time absentee investors** lose. The **bottom-quartile $625K average gross sales** scenario produces **$35K-$65K EBITDA** — before debt service. An **SBA 7(a) loan** on a **$700,000 buildout** at **10.5% over 10 years** costs roughly **$112,000 per year in debt service**, which **exceeds bottom-quartile EBITDA outright**. **Suburban Northeast and California operators** face **build-out costs at the high end of Item 7** ($900K-$1.18M) because of **prevailing-wage requirements**, **permitting delays of 5-9 months**, and **rent above $50/sq ft**. **Single-unit operators** who skip the multi-unit royalty incentive **pay full 6% royalty plus 2% marketing from week one** — that **8% gross-sales tax** at average volume of $1.01M is **$81,300 per year** off the top. **Operators chasing the better-burger segment without differentiation** lose to **Five Guys**, **Shake Shack**, **In-N-Out**, **Smashburger**, **Habit Burger**, and **Whataburger**, all of which have **deeper brand awareness** and **higher unit volumes**.

## 2027 Market Conditions

**Better-burger fast-casual is the toughest restaurant segment to enter in 2027**. **Burger and sandwich QSR segments are projected to grow under 0.5% in 2026** per **Technomic**, down from **1% in 2025**. **Beef prices are 32% above January 2023 levels** per **Datassential**, while menu prices have only risen **14% at full-service** and **16% at limited-service** — a **15-18 percentage-point margin gap** the industry is still absorbing. **The USDA cattle herd hit a 73-year low in early 2026**, and herd rebuilding takes **4-7 years**, so beef cost relief is unlikely before **2029**. **BurgerFi declared bankruptcy in September 2024**. **Shake Shack** has slowed new unit openings to **40-45 per year** (down from 75+ in 2022). **Habit Burger** parent **Yum Brands** has signaled it may divest the chain. **Mooyah's 2024 same-store sales rose 5.4% with 2.3% traffic growth** — meaningful outperformance, but on a low base of 76 units across 21 states. **Labor cost pressure** continues: **California's $20 fast-food minimum wage** took effect April 2024, **New York raised tipped-worker wages 14% in January 2026**, and **federal overtime threshold rose to $58,656** in January 2025. **The 2026 royalty incentive (4% year-one, scaling to 6%)** is a clear signal that **Mooyah corporate needs unit growth** and is willing to **subsidize the early years** to get it — favorable to franchisees willing to commit to 3+ stores.

```mermaid
flowchart LR
    A[Beef Cost +32% since 2023] --> B[Prime Cost 64-66%]
    C[Menu Price +14% only] --> B
    B --> D[Margin Compression 3-5pp]
    D --> E{Operator Response}
    E --> F[Multi-unit Royalty<br/>Incentive 4-5-6%]
    E --> G[Smaller Footprint<br/>1800 sqft Inline]
    E --> H[Catering + Delivery<br/>30-40% of Sales]
    F --> I[2027 Viable Path]
    G --> I
    H --> I
```

## The 90-Day Decision Tree

1. **Days 1-10 — Capital and credit verification.** Pull personal credit; confirm **FICO 720+**. Document **liquid capital of $300,000+** and **net worth of $800,000+**. Pre-qualify with **two SBA 7(a) preferred lenders** (Live Oak, Celtic, ReadyCap) for a **$500,000-$900,000 facility** at projected **9.5-11% rate**. If you cannot document these floors, **stop here** — Mooyah will not approve the application.
2. **Days 11-25 — FDD request and read.** Submit a **franchise inquiry** at franchise.mooyah.com. Mooyah ships the **2026 FDD** (registered with state regulators) within **5-7 business days**. **Read every word of Items 7, 19, 20, and 21**. Item 20 lists **closed/transferred/terminated stores** by name — call **5 of those former operators** directly. They will tell you the truth.
3. **Days 26-45 — Active-franchisee validation calls.** Call **15-20 current Mooyah franchisees** from the Item 20 list. Ask the **five questions that matter**: (a) actual gross sales versus FDD average, (b) prime cost percentage, (c) hours worked per week, (d) would they sign again, (e) what surprised them. Spend **3 hours minimum on validation**.
4. **Days 46-60 — Market and site analysis.** Order a **Buxton or eSite Analytics trade-area study** ($3,500-$6,500). Mooyah's ideal trade area is **25,000+ daytime population**, **$75,000+ median household income**, **40,000+ vehicles per day**, **end-cap with patio**. **Walk 8-12 potential sites** with a **commercial broker** — CBRE, JLL, or a regional retail specialist.
5. **Days 61-75 — Discovery Day and legal review.** Attend **Discovery Day at Plano, TX HQ** (2 days). Engage a **franchise attorney** ($3,500-$6,500 flat fee) to redline the **Franchise Agreement**. **Negotiate**: territory protection, **renewal terms**, transfer rights, **post-term covenants**, and the **2026 royalty incentive** if signing multi-unit.
6. **Days 76-90 — Decision and deposit OR walk.** If validation calls reported **$950K+ average sales**, prime cost **under 65%**, and **8+ of 15 operators said they would sign again** — sign the Franchise Agreement and wire the **$40,000 fee**. If any of those tripwires failed — **walk away and apply your capital to a better-economics concept** (see Alternative Plays).

## Alternative Plays

**If the better-burger thesis appeals but Mooyah does not, consider these.** **Five Guys** (private, **1,500+ units**, **$1.4M-$1.6M AUV**, **higher franchise fee at $25K-$80K** but no royalty incentive needed). **Smashburger** (Privately owned by Jollibee Foods, **220 units**, **$1.0M-$1.1M AUV**, **6% royalty + 2.5% marketing**, more flexible footprint). **Wayback Burgers** (**170+ units**, **lower investment at $278K-$700K**, **$793K AUV**). **Buying an existing Mooyah** via the **resale market** at **3-4× SDE** ($300K-$500K) avoids build-out risk and gives proven sales history — check **Mooyah's franchise resale listings** and **Restaurant Brokers Network**. **If the goal is restaurant cash flow rather than the burger thesis, the better economics in 2027 are in chicken** — **Slim Chickens** ($1.5M AUV, growing 15% YoY), **Bojangles** ($1.8M AUV), or **Dave's Hot Chicken** ($2.1M AUV, the fastest-growing chicken franchise in QSR history). Chicken margins beat beef margins by **4-7 percentage points** in 2026 because **chicken commodity prices are flat year-over-year** while beef is at record highs.

## FAQ

### Is Mooyah profitable for a single-unit owner-operator?
At **$1,016,330 system-average gross sales**, a single-unit owner-operator clears **$125,000-$160,000 in EBITDA before debt service**. After a **$700,000 SBA 7(a) loan** at **10.5% over 10 years** ($112K/yr in debt service), **take-home is $13,000-$48,000 in year one** — below median household income. The economics work for owner-operators only at **above-average volume ($1.15M+)** or with **lower debt load** ($350K-$450K total investment). Single-unit Mooyah is best treated as a **first store toward a 3-pack**, not a destination.

### How does Mooyah compare to Five Guys financially?
**Five Guys** wins on **unit volume** ($1.4M-$1.6M AUV versus Mooyah's $1.0M) but loses on **investment efficiency** — Five Guys' Item 7 ranges **$306K-$926K**, comparable to Mooyah. **Five Guys takes 4% royalty + 2% marketing** versus Mooyah's 6% + 2%, meaning Five Guys franchisees keep **$20,000-$28,000 more per store per year** in royalties. Five Guys' resale market is **tighter** (higher multiples, fewer listings). Choose Mooyah if you want a **smaller, faster-moving system** and the **2026 royalty incentive**; choose Five Guys for **proven $1.4M+ volumes**.

### What kills a Mooyah franchise?
**Three failure modes** dominate. **Bad real estate** (low-traffic strip centers, no patio, weak end-cap visibility) cuts gross sales **25-40%** versus FDD average. **Inexperienced operators** who try to **absentee-manage** burn through working capital in **6-9 months**. **Over-leveraged builds** ($900K+ on a market that supports $850K AUV) make debt service the killer — the **Item 19 bottom quartile** is dominated by **over-built, over-leveraged** stores.

### Can I finance a Mooyah with an SBA 7(a) loan?
Yes. Mooyah is on the **SBA Franchise Directory**, so **SBA 7(a) loans up to $5 million** are available through **preferred lenders** (Live Oak Bank, Celtic Bank, ReadyCap, Newtek). **Typical structure**: 20-25% equity injection, **10-year term**, **prime + 2.75-3.0%** (currently **10.5-11%**). **SBA 504** is also available for the **real estate portion** if you own the building. **Expect 60-90 days from application to funding** with a strong package.

### Should I buy an existing Mooyah or open new?
**Buy existing** if you find a store with **2+ years of operating history**, **$900K+ trailing 12-month sales**, **clean lease with 5+ years remaining**, and a **3.0-3.5× SDE multiple**. **Open new** if you have an **A-grade real estate site** Mooyah corporate has not yet approved, you want **fresh equipment with full warranties**, and you can commit to the **2026 multi-unit royalty incentive**. **Resale economics usually win** for single-unit operators; **new-build economics win** for 3-pack developers using the incentive.

## Bottom Line

**Mooyah is a viable franchise for the right operator profile and a capital-destroying choice for the wrong one.** The **2026 royalty incentive** (4-5-6% step-up over three years) materially improves the **multi-unit math** and is the strongest signal Mooyah corporate has sent in years. **Single-unit, first-time, absentee owners should walk**; **multi-unit restaurant operators with $500K-$900K liquid, A-grade real estate, and Sunbelt geography should run the 90-day decision tree** and likely sign. **Average gross sales of $1.016M** with **12-15% EBITDA margin** clears the **operator-led franchise investment bar** at **$600K-$800K all-in**, but only with **disciplined site selection** and **prime cost held under 65%**. **Beef inflation, segment stagnation, and BurgerFi-style competitor failures** are real risks priced into the deal. **Buy existing at 3.0-3.5× SDE** if a clean resale appears in your market — that is the **highest risk-adjusted return path** in the Mooyah system today.

## Sources

- Franchise Chatter — **MOOYAH Franchise Review 2025: Costs, Fees, Average Revenues and/or Profits** (August 2025)
- Mooyah Franchising LLC — **2025 Franchise Disclosure Document, Item 7 and Item 19**
- Vetted Biz — **Mooyah Franchise Insights: FDD, Costs & Fees** (2026 update)
- Sharpsheets — **MOOYAH Burgers, Fries & Shakes Franchise FDD, Profits & Costs** (2025)
- 1851 Franchise — **How Much Does It Cost To Open a MOOYAH Franchise?**
- QSR Magazine — **MOOYAH Offers New Franchise Incentive for Multi-Unit Operators** (2025)
- QSR Magazine — **Restaurant Outlook for 2026: Leaders Take Share, and Searching for a Spark**
- Datassential — **Burger Prices Up 14% Since 2023 While Beef Costs Surge 32%** (2026 analysis)
- Restaurant Dive — **Beef costs exceed burger prices, pressuring QSRs** (2026)
- IBISWorld — **Burger Restaurants in the US Industry Report** (2026 edition)
- National Restaurant Association — **2026 State of the Restaurant Industry Report**
- Bisnow — **Mooyah Burgers Targets Expansion Amid Industry Challenges** (2025)
- SBA Franchise Directory — **MOOYAH Franchising LLC** (active, 2026)

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