Should I open or buy a Texas Roadhouse franchise in 2027?

👁 0 views📖 2,173 words⏱ 10 min read📅 Published Jun 4, 2026

Direct Answer

Probably not — unless you already own multiple steakhouse units or sit on an international development deal, because Texas Roadhouse has not awarded a new domestic franchise in over a decade and is actively buying franchises back rather than selling new territory. The realistic 2027 paths are three: (1) buy an existing franchise at roughly $4.2M to $5.4M per unit based on the company's own 2025-2026 acquisition comps, (2) pursue an international area development agreement at the published FDD range of $3.89M to $7.90M all-in plus a $40,000 franchise fee, 4% royalty, and 4.8% marketing, or (3) join the Managing Partner program at a $25,000 refundable deposit for 10% of store profit — typically $130K to $145K annually on top of base salary.

Breakeven on a new build runs 6 to 9 years; resales pay back in 4 to 6.

The Real Numbers

Texas Roadhouse is one of the most financially attractive casual-dining brands in North America, but the economics for an outside franchisee are unusual because the brand prefers to operate, not license. Q1 2026 company-operated average weekly sales hit $174,151 (annualized ~$9.06M AUV), with restaurant-level margin at 16.3% — meaning a single mature store throws off roughly $1.4M to $1.5M in store-level EBITDA before G&A and debt service.

The franchise FDD does not include an Item 19 financial performance representation, so franchisees must request store P&Ls directly from existing operators during the Item 20 contact exchange. Below is the 2026 FDD Item 7 build, anchored to the published franchise.com and FranchiseHelp ranges.

Line Item	Low	High	Source
Initial Franchise Fee	$40,000	$40,000	FDD Item 5
Real Estate / Site Work	$850,000	$2,100,000	FDD Item 7
Building Construction	$1,400,000	$2,800,000	FDD Item 7
Equipment & Smallwares	$725,000	$950,000	FDD Item 7
Signage & POS	$145,000	$235,000	FDD Item 7
Opening Inventory	$95,000	$145,000	FDD Item 7
Training & Pre-Opening Labor	$385,000	$585,000	FDD Item 7
Working Capital (3 mo.)	$254,500	$1,046,500	FDD Item 7
TOTAL INITIAL INVESTMENT	$3,894,500	$7,901,500	FDD Item 7
Royalty (% gross sales)	4.0%	4.0%	FDD Item 6
Marketing Contribution	4.8%	4.8%	FDD Item 6
Liquid Capital Required	$1,000,000	$1,000,000	FDD Item 7
Net Worth Required	$4,000,000	$4,000,000	FDD Item 7
Implied Annual Royalty + Marketing @ $9M AUV	$792,000	$792,000	calc
Year-1 Conservative Cash Flow (new build)	$480,000	$740,000	analyst est.
Payback Period (new build)	6 yrs	9 yrs	analyst est.

Resale comparison: Texas Roadhouse Inc. Itself paid ~$4.14M per unit in 2022, ~$4.88M in 2023, and ~$5.40M per unit in 2025 ($108M for 20 units) to buy back franchise restaurants. Those are the defensible 2027 comps for any private resale.

Q1 2026 acquisitions totaled $71.8M of additional franchise units, indicating the buyback program is accelerating, not slowing.

flowchart TD A[Prospective Franchisee] --> B{Domestic or International?} B -->|Domestic| C[New territory CLOSED since ~2015] B -->|International| D[Area Development Agreement] C --> E[Buy Existing Franchise Resale] C --> F[Apply to Managing Partner Program] E --> G[$4.2M to $5.4M per unit] E --> H[Brand has right of first refusal] F --> I[$25,000 deposit + 5-yr contract] F --> J[10% of store profit + base salary] D --> K[$3.89M to $7.90M per restaurant] D --> L[4% royalty + 4.8% marketing] G --> M[Year-1 cash flow $480K to $740K] K --> M J --> N[$130K to $145K bonus on top of base] H --> O[Texas Roadhouse Inc. may buy first] O --> P[Track record: $108M / 20 units in 2025]

Who Wins With This Business

The profile that wins with Texas Roadhouse in 2027 is narrow but well-defined. First, you are an experienced multi-unit operator — ideally with at least three operating steakhouse or full-service restaurants under your belt — because the brand's development committee will not entertain single-unit applicants internationally.

Second, you have $4M+ in verifiable net worth and $1M liquid, with bank relationships already in place for SBA 7(a) or conventional CRE debt at the $3M to $5M tranche. Third, you understand that restaurant labor is now 33% to 35% of sales post-2024 minimum-wage hikes in 18 states, and you have a systematic training apparatus to keep turnover under the 128% industry average reported by the National Restaurant Association.

Fourth, if you are pursuing resales, you have patience for a 12 to 18-month transaction window because Texas Roadhouse Inc. Holds a right of first refusal on every franchise sale and has been actively exercising it. Winners are operators, not investors — this brand punishes absentee ownership.

Who Loses With This Business

The profile that loses is anyone treating this as a passive real-estate-anchored cash-flow play. First, first-time restaurant owners lose — the brand explicitly does not award franchises to industry novices, and resale sellers (typically multi-unit veterans exiting) will not finance an inexperienced buyer.

Second, single-unit hopefuls lose — the unit economics require 3+ store scale to absorb the $200K to $350K per-year regional support overhead the brand expects. Third, investors banking on Texas Roadhouse's stock-price growth as a proxy for franchise economics lose — TXRH trades at a premium because of company-operated stores, not franchise royalties (franchise revenue is <2% of consolidated revenue).

Fourth, anyone hoping for new domestic territory loses — the brand has not opened a new domestic franchise since the early 2010s and shows zero signal of reversing. Fifth, operators in low-density rural markets lose because the $9M AUV math requires a 60,000+ trade-area population and a 24%+ daypart mix from dinner.

2027 Market Conditions

The 2027 backdrop for full-service steakhouse franchising is mixed-positive for incumbents and hostile to new entrants. Beef commodity costs remain elevated: the USDA's May 2026 cattle inventory report showed the U.S. Beef herd at a 73-year low of 87.2 million head, pushing wholesale boxed-beef prices to the $320 to $340/cwt range versus a $240 baseline five years prior.

Texas Roadhouse's Q1 2026 commentary flagged beef inflation of 7% to 8% expected for full-year 2026, with menu price take of only 1.5% to 1.8% — meaning margin compression continues. Labor: 18 states raised minimum wage in 2026, with California, New York, and Washington pushing $20+/hour for tipped credit calculations.

Consumer demand: TXRH comp sales grew 7.1% in Q1 2026 while Darden's Olive Garden and LongHorn posted 2.4% and 3.6% respectively — Texas Roadhouse is taking share in the segment. Real estate: CMBS spreads on restaurant CRE widened 80 to 120 basis points in late 2025, making new build debt more expensive.

The brand's table-service technology rollout (announced May 2026) will add $40K to $80K per store in capex but is expected to lift average check 3% to 5%.

The 90-Day Decision Tree

Days 1-15 — Confirm path. Decide between (a) international area development, (b) domestic resale, or (c) Managing Partner program. Pull the most recent FDD from the Wisconsin or Minnesota state registry (free public access). Confirm your net worth and liquidity exceed the $4M / $1M floors with audited financials.
Days 16-30 — Initial contact. Submit the franchise application via texasroadhousefranchising.com. For resales, retain a franchise resale broker (Franchise Flippers, Restaurant Brokers Network) and sign NDAs on 3 to 5 active listings. For Managing Partner, apply through the corporate careers portal and complete the Houston development center interview loop.
Days 31-45 — Item 19 substitute. Because TR omits Item 19, request Item 20 franchisee contact lists and call at least 15 existing franchisees. Specifically ask for store-level P&Ls, AUV, prime cost (food + labor), and 4-wall EBITDA.
Days 46-60 — Site or asset diligence. For resale: order a Quality of Earnings report ($35K to $60K) and environmental Phase I on the real estate. For new build: confirm demographics meet the 60K trade-area + $75K median HHI threshold.
Days 61-75 — Financing. Secure term sheets from at least 2 lenders (SBA 7(a) for resales under $5M; conventional CRE + equipment financing above). Lock equity contribution at 25% to 30% of total project cost.
Days 76-90 — Decision and signing. Either sign the franchise or area development agreement (typically 20-year initial term with 10-year renewal) or walk away. Build in a 30-day cure window for any Texas Roadhouse Inc. Right-of-first-refusal exercise.

flowchart LR A[Day 1-15: Path Selection] --> B[Day 16-30: Application] B --> C[Day 31-45: Item 20 Calls] C --> D[Day 46-60: QoE + Site Diligence] D --> E[Day 61-75: Lender Term Sheets] E --> F[Day 76-90: Sign or Walk] F -->|Sign| G[20-yr Franchise Agreement] F -->|Walk| H[Pivot to LongHorn / Outback] G --> I[Opening 18-24 months later]

Alternative Plays

If Texas Roadhouse's closed-door domestic model rules you out, the viable 2027 alternatives in casual-dining steakhouse are: LongHorn Steakhouse (Darden, not franchised — company-operated only, similar barrier), Outback Steakhouse (Bloomin' Brands, international franchising only, similar $4M to $6M investment), Sizzler (actively franchising, $1.4M to $2.8M investment, 6% royalty, lower AUV at ~$2.4M), Black Angus Steakhouse (re-emerging from 2020 bankruptcy, selective franchising), and Texas Cattle Company (regional, $900K to $1.6M investment).

For operators specifically attracted to Texas Roadhouse's unit economics, the closest available franchise with comparable AUV is Bonefish Grill ($3.5M to $5.8M, ~$4.1M AUV) or Saltgrass Steak House ($4.2M to $6.1M, regional growth strategy). The Managing Partner program remains the highest cash-on-cash return path to a Texas Roadhouse-branded operation domestically: $25K deposit + 10% profit share at $1.4M store EBITDA = $140K bonus, a 560% annual return on the deposit.

FAQ

Can I open a new Texas Roadhouse franchise in the United States in 2027?

No. Texas Roadhouse has not awarded a new domestic franchise in over a decade and is actively buying back existing franchises ($108M for 20 units in 2025; $71.8M in Q1 2026 alone). Domestic expansion is exclusively through company-operated stores under the Managing Partner model.

The only domestic franchise pathways in 2027 are (a) buying an existing franchise from a current owner (subject to right of first refusal) or (b) joining the Managing Partner program at $25K.

What does Texas Roadhouse pay Managing Partners?

Managing Partners receive a base salary plus 10% of store net profit, with the base typically in the $80K to $110K range and the profit share at $130K to $145K annually on a healthy store, per Mashed and Glassdoor 2026 data. The $25,000 buy-in is refundable at the end of the 5-year contract.

Net worth requirement is $500K (versus $4M for franchisees), and 5 years of multi-unit restaurant management experience is mandatory.

How much does an existing Texas Roadhouse franchise sell for?

Recent Texas Roadhouse Inc. Acquisitions provide the defensible 2027 comps: $4.14M/unit in 2022, $4.88M/unit in 2023, $5.40M/unit in 2025 (the $108M / 20-unit deal), and $4.23M/unit in Q4 2025 (the 3-unit deal at $12.7M). Most private resales price at a 6x to 8x store-level EBITDA multiple, equating to $3.5M to $5.5M per unit depending on lease, equipment age, and market.

Why does Texas Roadhouse not include an Item 19 in its FDD?

Item 19 financial performance representations are optional under FTC Rule 436. Texas Roadhouse historically declined to publish one to protect competitive sales data and because franchise units represent <2% of consolidated revenue — the brand has no incentive to use Item 19 as a sales tool.

Prospective franchisees must request P&Ls directly via Item 20 contact lists, which is standard practice at brands like In-N-Out, Chick-fil-A, and other operators who prefer company-operated models.

What is the realistic Year-1 cash flow on a new international Texas Roadhouse franchise?

On a $5.5M to $6.5M average build, with AUV ramping to ~$5M to $7M in Year 1 (typical for an international steakhouse opening), expect store-level EBITDA of $480K to $740K after 4% royalty, 4.8% marketing, 33% food cost, and 32% labor. Debt service on $4M at 7.5% over 15 years is approximately $445K/year, leaving net cash flow of $35K to $295K in Year 1, scaling to $700K to $1.1M by Year 3 as the store matures.

Bottom Line

Texas Roadhouse is not a franchise opportunity in any traditional sense for U.S. Operators in 2027. The brand has publicly and structurally chosen to grow through company-operated stores because the $174K weekly AUV economics are too good to share with outside franchisees at a 4% royalty.

If you have multi-unit international scale, the FDD economics work at a 6 to 9-year payback. If you can find a U.S. Resale, expect to pay $4M to $5.5M per unit and compete against Texas Roadhouse Inc.'s right of first refusal.

The highest-ROI domestic pathway is the Managing Partner program at $25K, which produces $130K to $145K in profit share on a strong store — a return profile no other casual-dining brand can match. For anyone outside those three lanes, deploy the capital into Sizzler, Saltgrass, or a non-steakhouse franchise instead.

Sources

Keep reading

## Direct Answer

**Probably not — unless you already own multiple steakhouse units or sit on an international development deal**, because **Texas Roadhouse has not awarded a new domestic franchise in over a decade** and is actively **buying franchises back** rather than selling new territory. The realistic 2027 paths are three: (1) **buy an existing franchise** at roughly **$4.2M to $5.4M per unit** based on the company's own 2025-2026 acquisition comps, (2) **pursue an international area development agreement** at the published FDD range of **$3.89M to $7.90M** all-in plus a **$40,000 franchise fee, 4% royalty, and 4.8% marketing**, or (3) **join the Managing Partner program** at a **$25,000 refundable deposit** for **10% of store profit** — typically **$130K to $145K annually** on top of base salary. Breakeven on a new build runs **6 to 9 years**; resales pay back in **4 to 6**.

## The Real Numbers

Texas Roadhouse is one of the most financially attractive **casual-dining brands** in North America, but the **economics for an outside franchisee are unusual** because the brand prefers to **operate, not license**. **Q1 2026 company-operated average weekly sales hit $174,151** (annualized ~**$9.06M AUV**), with **restaurant-level margin at 16.3%** — meaning a single mature store throws off roughly **$1.4M to $1.5M in store-level EBITDA** before G&A and debt service. The **franchise FDD does not include an Item 19 financial performance representation**, so franchisees must request **store P&Ls directly from existing operators** during the Item 20 contact exchange. Below is the **2026 FDD Item 7 build**, anchored to the published franchise.com and FranchiseHelp ranges.

| Line Item | Low | High | Source |
|---|---|---|---|
| **Initial Franchise Fee** | $40,000 | $40,000 | FDD Item 5 |
| **Real Estate / Site Work** | $850,000 | $2,100,000 | FDD Item 7 |
| **Building Construction** | $1,400,000 | $2,800,000 | FDD Item 7 |
| **Equipment & Smallwares** | $725,000 | $950,000 | FDD Item 7 |
| **Signage & POS** | $145,000 | $235,000 | FDD Item 7 |
| **Opening Inventory** | $95,000 | $145,000 | FDD Item 7 |
| **Training & Pre-Opening Labor** | $385,000 | $585,000 | FDD Item 7 |
| **Working Capital (3 mo.)** | $254,500 | $1,046,500 | FDD Item 7 |
| **TOTAL INITIAL INVESTMENT** | **$3,894,500** | **$7,901,500** | FDD Item 7 |
| **Royalty (% gross sales)** | 4.0% | 4.0% | FDD Item 6 |
| **Marketing Contribution** | 4.8% | 4.8% | FDD Item 6 |
| **Liquid Capital Required** | $1,000,000 | $1,000,000 | FDD Item 7 |
| **Net Worth Required** | $4,000,000 | $4,000,000 | FDD Item 7 |
| **Implied Annual Royalty + Marketing @ $9M AUV** | $792,000 | $792,000 | calc |
| **Year-1 Conservative Cash Flow (new build)** | $480,000 | $740,000 | analyst est. |
| **Payback Period (new build)** | 6 yrs | 9 yrs | analyst est. |

**Resale comparison:** Texas Roadhouse Inc. Itself paid **~$4.14M per unit in 2022, ~$4.88M in 2023, and ~$5.40M per unit in 2025** ($108M for 20 units) to buy back franchise restaurants. Those are the **defensible 2027 comps** for any private resale. **Q1 2026 acquisitions totaled $71.8M** of additional franchise units, indicating the buyback program is **accelerating, not slowing**.

```mermaid
flowchart TD
    A[Prospective Franchisee] --> B{Domestic or International?}
    B -->|Domestic| C[New territory CLOSED since ~2015]
    B -->|International| D[Area Development Agreement]
    C --> E[Buy Existing Franchise Resale]
    C --> F[Apply to Managing Partner Program]
    E --> G[$4.2M to $5.4M per unit]
    E --> H[Brand has right of first refusal]
    F --> I[$25,000 deposit + 5-yr contract]
    F --> J[10% of store profit + base salary]
    D --> K[$3.89M to $7.90M per restaurant]
    D --> L[4% royalty + 4.8% marketing]
    G --> M[Year-1 cash flow $480K to $740K]
    K --> M
    J --> N[$130K to $145K bonus on top of base]
    H --> O[Texas Roadhouse Inc. may buy first]
    O --> P[Track record: $108M / 20 units in 2025]
```

## Who Wins With This Business

The **profile that wins** with Texas Roadhouse in 2027 is **narrow but well-defined**. **First**, you are an **experienced multi-unit operator** — ideally with **at least three operating steakhouse or full-service restaurants** under your belt — because the brand's **development committee will not entertain single-unit applicants** internationally. **Second**, you have **$4M+ in verifiable net worth and $1M liquid**, with **bank relationships already in place for SBA 7(a) or conventional CRE debt** at the **$3M to $5M tranche**. **Third**, you understand that **restaurant labor is now 33% to 35% of sales** post-2024 minimum-wage hikes in 18 states, and you have a **systematic training apparatus** to keep turnover under the **128% industry average** reported by the National Restaurant Association. **Fourth**, if you are pursuing resales, you have **patience for a 12 to 18-month transaction window** because **Texas Roadhouse Inc. Holds a right of first refusal** on every franchise sale and **has been actively exercising it**. **Winners are operators, not investors** — this brand punishes absentee ownership.

## Who Loses With This Business

The **profile that loses** is **anyone treating this as a passive real-estate-anchored cash-flow play**. **First**, **first-time restaurant owners** lose — the brand explicitly **does not award franchises to industry novices**, and resale sellers (typically multi-unit veterans exiting) **will not finance an inexperienced buyer**. **Second**, **single-unit hopefuls** lose — the unit economics require **3+ store scale** to absorb the **$200K to $350K per-year regional support overhead** the brand expects. **Third**, **investors banking on Texas Roadhouse's stock-price growth as a proxy for franchise economics** lose — **TXRH trades at a premium because of company-operated stores**, not franchise royalties (franchise revenue is **<2% of consolidated revenue**). **Fourth**, **anyone hoping for new domestic territory** loses — the brand **has not opened a new domestic franchise since the early 2010s** and shows zero signal of reversing. **Fifth**, **operators in low-density rural markets** lose because the **$9M AUV math requires a 60,000+ trade-area population** and a **24%+ daypart mix from dinner**.

## 2027 Market Conditions

The **2027 backdrop for full-service steakhouse franchising** is **mixed-positive** for incumbents and **hostile to new entrants**. **Beef commodity costs remain elevated**: the **USDA's May 2026 cattle inventory report** showed the **U.S. Beef herd at a 73-year low of 87.2 million head**, pushing **wholesale boxed-beef prices to the $320 to $340/cwt range** versus a **$240 baseline** five years prior. **Texas Roadhouse's Q1 2026 commentary** flagged **beef inflation of 7% to 8% expected for full-year 2026**, with **menu price take of only 1.5% to 1.8%** — meaning **margin compression continues**. **Labor**: **18 states raised minimum wage in 2026**, with **California, New York, and Washington pushing $20+/hour** for tipped credit calculations. **Consumer demand**: **TXRH comp sales grew 7.1% in Q1 2026** while **Darden's Olive Garden and LongHorn** posted **2.4% and 3.6%** respectively — Texas Roadhouse is **taking share** in the segment. **Real estate**: **CMBS spreads on restaurant CRE** widened **80 to 120 basis points** in late 2025, making **new build debt more expensive**. The brand's **table-service technology rollout** (announced May 2026) will **add $40K to $80K per store in capex** but is **expected to lift average check 3% to 5%**.

## The 90-Day Decision Tree

1. **Days 1-15 — Confirm path.** Decide between **(a) international area development**, **(b) domestic resale**, or **(c) Managing Partner program**. Pull the **most recent FDD from the Wisconsin or Minnesota state registry** (free public access). **Confirm your net worth and liquidity exceed the $4M / $1M floors** with audited financials.
2. **Days 16-30 — Initial contact.** Submit the **franchise application via texasroadhousefranchising.com**. For resales, retain a **franchise resale broker** (Franchise Flippers, Restaurant Brokers Network) and **sign NDAs on 3 to 5 active listings**. For Managing Partner, **apply through the corporate careers portal** and complete the **Houston development center interview loop**.
3. **Days 31-45 — Item 19 substitute.** Because **TR omits Item 19**, request **Item 20 franchisee contact lists** and **call at least 15 existing franchisees**. Specifically ask for **store-level P&Ls, AUV, prime cost (food + labor), and 4-wall EBITDA**.
4. **Days 46-60 — Site or asset diligence.** For resale: order a **Quality of Earnings report** ($35K to $60K) and **environmental Phase I** on the real estate. For new build: confirm **demographics meet the 60K trade-area + $75K median HHI threshold**.
5. **Days 61-75 — Financing.** Secure **term sheets from at least 2 lenders** (SBA 7(a) for resales under $5M; conventional CRE + equipment financing above). **Lock equity contribution at 25% to 30%** of total project cost.
6. **Days 76-90 — Decision and signing.** Either **sign the franchise or area development agreement** (typically 20-year initial term with 10-year renewal) or **walk away**. Build in a **30-day cure window** for any Texas Roadhouse Inc. Right-of-first-refusal exercise.

```mermaid
flowchart LR
    A[Day 1-15: Path Selection] --> B[Day 16-30: Application]
    B --> C[Day 31-45: Item 20 Calls]
    C --> D[Day 46-60: QoE + Site Diligence]
    D --> E[Day 61-75: Lender Term Sheets]
    E --> F[Day 76-90: Sign or Walk]
    F -->|Sign| G[20-yr Franchise Agreement]
    F -->|Walk| H[Pivot to LongHorn / Outback]
    G --> I[Opening 18-24 months later]
```

## Alternative Plays

If Texas Roadhouse's **closed-door domestic model** rules you out, the **viable 2027 alternatives** in casual-dining steakhouse are: **LongHorn Steakhouse** (Darden, **not franchised** — company-operated only, similar barrier), **Outback Steakhouse** (Bloomin' Brands, **international franchising only**, similar $4M to $6M investment), **Sizzler** (actively franchising, **$1.4M to $2.8M investment**, 6% royalty, lower AUV at **~$2.4M**), **Black Angus Steakhouse** (re-emerging from 2020 bankruptcy, **selective franchising**), and **Texas Cattle Company** (regional, **$900K to $1.6M investment**). For operators specifically attracted to **Texas Roadhouse's unit economics**, the closest **available franchise** with comparable AUV is **Bonefish Grill** ($3.5M to $5.8M, **~$4.1M AUV**) or **Saltgrass Steak House** ($4.2M to $6.1M, **regional growth strategy**). The **Managing Partner program** remains the **highest cash-on-cash return path** to a Texas Roadhouse-branded operation domestically: **$25K deposit + 10% profit share at $1.4M store EBITDA = $140K bonus**, a **560% annual return on the deposit**.

## FAQ

### Can I open a new Texas Roadhouse franchise in the United States in 2027?

**No.** Texas Roadhouse **has not awarded a new domestic franchise in over a decade** and is **actively buying back existing franchises** ($108M for 20 units in 2025; $71.8M in Q1 2026 alone). **Domestic expansion is exclusively through company-operated stores** under the Managing Partner model. The only domestic franchise pathways in 2027 are **(a) buying an existing franchise from a current owner** (subject to right of first refusal) or **(b) joining the Managing Partner program** at $25K.

### What does Texas Roadhouse pay Managing Partners?

**Managing Partners receive a base salary plus 10% of store net profit**, with the **base typically in the $80K to $110K range** and the **profit share at $130K to $145K annually** on a healthy store, per Mashed and Glassdoor 2026 data. The **$25,000 buy-in is refundable** at the end of the 5-year contract. **Net worth requirement is $500K** (versus $4M for franchisees), and **5 years of multi-unit restaurant management experience is mandatory**.

### How much does an existing Texas Roadhouse franchise sell for?

**Recent Texas Roadhouse Inc. Acquisitions provide the defensible 2027 comps**: **$4.14M/unit in 2022, $4.88M/unit in 2023, $5.40M/unit in 2025** (the $108M / 20-unit deal), and **$4.23M/unit in Q4 2025** (the 3-unit deal at $12.7M). Most private resales price at a **6x to 8x store-level EBITDA multiple**, equating to **$3.5M to $5.5M per unit** depending on lease, equipment age, and market.

### Why does Texas Roadhouse not include an Item 19 in its FDD?

**Item 19 financial performance representations are optional** under FTC Rule 436. **Texas Roadhouse historically declined** to publish one to **protect competitive sales data** and because **franchise units represent <2% of consolidated revenue** — the brand has no incentive to use Item 19 as a sales tool. Prospective franchisees must **request P&Ls directly via Item 20 contact lists**, which is **standard practice** at brands like In-N-Out, Chick-fil-A, and other operators who prefer company-operated models.

### What is the realistic Year-1 cash flow on a new international Texas Roadhouse franchise?

On a **$5.5M to $6.5M average build**, with **AUV ramping to ~$5M to $7M in Year 1** (typical for an international steakhouse opening), expect **store-level EBITDA of $480K to $740K** after **4% royalty, 4.8% marketing, 33% food cost, and 32% labor**. **Debt service on $4M at 7.5% over 15 years is approximately $445K/year**, leaving **net cash flow of $35K to $295K in Year 1**, scaling to **$700K to $1.1M by Year 3** as the store matures.

## Bottom Line

**Texas Roadhouse is not a franchise opportunity in any traditional sense for U.S. Operators in 2027.** The brand has **publicly and structurally chosen to grow through company-operated stores** because **the $174K weekly AUV economics are too good to share** with outside franchisees at a **4% royalty**. If you have **multi-unit international scale**, the **FDD economics work** at a **6 to 9-year payback**. If you can find a **U.S. Resale**, expect to pay **$4M to $5.5M per unit** and **compete against Texas Roadhouse Inc.'s right of first refusal**. The **highest-ROI domestic pathway** is the **Managing Partner program at $25K**, which produces **$130K to $145K in profit share** on a strong store — a **return profile no other casual-dining brand can match**. For anyone outside those three lanes, **deploy the capital into Sizzler, Saltgrass, or a non-steakhouse franchise** instead.

## Sources

- [Texas Roadhouse, Inc. Q1 2026 Form 8-K (SEC.gov)](https://www.sec.gov/Archives/edgar/data/0001289460/000110465926057105/txrh-20260506xex99d1.htm)
- [Texas Roadhouse 2024 10-K Annual Report (SEC.gov)](https://www.sec.gov/Archives/edgar/data/1289460/000155837025001904/txrh-20241231x10k.htm)
- [Texas Roadhouse 2023 Franchise Disclosure Document (FDD Exchange)](https://fddexchange.com/view-fdd-docs/texas-roadhouse-2023-fdd-franchise-information-costs-and-fees/)
- [Texas Roadhouse Franchise FDD, Costs and Fees 2026 (FranchisePayback)](https://www.franchisepayback.com/franchise/texas-roadhouse)
- [Texas Roadhouse Franchise Insights (VettedBiz)](https://www.vettedbiz.com/franchises/texas-roadhouse)
- [Texas Roadhouse Franchise Cost and Opportunities (FranchiseHelp)](https://www.franchisehelp.com/franchises/texas-roadhouse-steakhouse/)
- [Texas Roadhouse to acquire 13 restaurants from a franchisee (Restaurant Business Online)](https://www.restaurantbusinessonline.com/financing/texas-roadhouse-acquire-13-restaurants-franchisee)
- [Texas Roadhouse Q1 CY2026 Earnings (StockStory)](https://stockstory.org/us/stocks/nasdaq/txrh/news/earnings/texas-roadhouses-nasdaqtxrh-q1-cy2026-earnings-results-revenue-in-line-with-expectations-stock-soars)
- [Texas Roadhouse Managing Partner Program (Franchisesbiz.com)](https://franchisesbiz.com/blogs/franchise-works/texas-roadhouse)
- [Texas Roadhouse Franchise Growth and Limitations (FranchiseBA 2026)](https://www.franchiseba.com/texas-roadhouse-franchise-guide-2025/)
- [Texas Roadhouse Managing Partner Salary 2026 (Glassdoor)](https://www.glassdoor.com/Salaries/managing-partner-texas-roadhouse-salary-SRCH_KO0,16_KE17,32.htm)
- [USDA Cattle Inventory Report May 2026 (National Restaurant Association reporting)](https://www.restaurant.org/research-and-media/research/economists-notebook/)

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