Texas Roadhouse

Texas Roadhouse Franchise FDD, Costs & Fees (2025)

Casual dining restaurant franchise known for its hand-cut steaks, ribs, and made-from-scratch sides, offering a lively and Western-themed atmosphere.

Founded in 1993 in Clarksville, Indiana, Texas Roadhouse has grown into a renowned American steakhouse chain celebrated for its hand-cut steaks, made-from-scratch sides, and lively atmosphere.

The company's headquarters are located in Louisville, Kentucky. Since its inception, Texas Roadhouse has expanded its footprint through franchising, bringing its distinctive dining experience to numerous locations across the United States and internationally.

Texas Roadhouse offers a menu centered around high-quality steaks, ribs, and a variety of American classics, all prepared with a commitment to freshness and flavor.

The brand sets itself apart by emphasizing a fun, family-friendly environment, complete with line dancing servers and a welcoming ambiance that reflects its Southern roots. This dedication to providing "Legendary Food, Legendary Service" has solidified Texas Roadhouse's position in the competitive casual dining industry.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount (Low – High)
Franchise Fee $40,000
Leasehold/Building Improvements Renovation: $1,400,000 to $2,200,000
New Build-out: $2,500,000 to $3,300,000
Architectural/Engineering/Site Evaluation $190,000 to $280,000
Builders Risk and OCP Insurance $5,000 to $12,000
Performance Bonds Renovation: $12,000 to $25,000
New Build-out: $14,000 to $38,000
Furniture, Decor and Fixtures $290,000 to $370,000
Equipment Renovation: $700,000 to $900,000
New Build-out: $1,100,000 to $1,300,000
Signs $80,000 to $150,000
Insurance $60,000 to $140,000
Initial Inventory $38,500 to $62,000
Supplies $20,000 to $35,000
Smallwares $50,000 to $70,000
Computer Hardware/Software; POS System/Network Cabling Fees $220,000 to $250,000
Marketing and Promotional Materials $1,000 to $10,000
Training Costs/Opening Assistance $90,000 to $139,500
Licenses, Permits, Incorporation $120,000 to $300,000
Liquor Licenses $1,000 to $300,000
Utility and Telephone Deposits $5,000 to $50,000
Other Pre-opening Costs Not Listed Above $130,000 to $255,000
Additional Funds (3 months) $442,000 to $800,000
Totals Renovation: $3,894,500 to $6,388,500
New Build-out: $5,396,500 to $7,901,500

Franchise Disclosure Document

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Competitors

Below are some of

Texas Roadhouse

key competitors in the

Steakhouse & Grill

sector.

Started franchising
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Franchise fee

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Royalty fee

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Investment

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Revenue (AUV)

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Gross Profit

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EBITDA

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Home-based

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Passive investment

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FDD
Texas Roadhouse
1995
56
+
-20%
-20%
$40,000
4.00%

$3,895,000

-

$7,902,000

n.a.

$4,843,000

Upgrade

n.a.

n.a.

Upgrade

n.a.

n.a.

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2014
15
+
0%
0%
$50,000
4.00%

$1,520,000

-

$4,999,000

Upgrade

n.a.

$3,924,000

63.2%

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
Yes
Upgrade
Yes
1993
21
+
-9%
-9%
$50,000
6.00%

$1,210,000

-

$2,329,000

Upgrade

n.a.

$2,746,000

66.9%

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
1994
6
+
0%
0%
$50,000
5.00%

$714,000

-

$1,501,000

Upgrade

n.a.

$1,157,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2021
1
+
n.a.
n.a.
$40,000
5.00%

$540,000

-

$1,215,000

Upgrade

n.a.

$1,534,000

n.a.

n.a.

Upgrade

n.a.

n.a.

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No
Upgrade
No
No
Upgrade
No
2003
5
+
-17%
-17%
$30,000
5.00%

$315,000

-

$675,000

Upgrade

n.a.

$1,515,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
2023
0
+
n.a.
n.a.
$30,000
5.00%

$248,000

-

$471,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade

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Total investment

?

Revenue (AUV)

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Revenue growth (last 3 years)

?

Profit margin

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Franchise Disclosure Documents
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Priority support

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Training

The franchisor provides extensive training to ensure the effective operation of the franchise. Here are the key aspects:

  1. Initial Training Program:
    • The Managing Partner is required to start the initial training program no later than one year before the restaurant begins operations. All other managers must be hired at least six months before the start of operations to undergo necessary training.
  2. Training Components:
    • Training includes classroom sessions and on-the-job training.
    • Various restaurant roles, such as baking, cold prep, hot prep, salads, fry, and meat cutting, have specific training requirements, including hands-on and theoretical knowledge.
  3. Ongoing and Additional Training:
    • Franchisees must ensure their team attends periodic system-wide meetings and additional training programs as mandated by the franchisor.
    • These sessions may include updates on operational standards, marketing strategies, or other system-wide enhancements.
  4. On-Site Pre-Opening Training:
    • The franchisor provides an opening crew for 15-20 days of on-site pre-opening and opening support, which can be extended at the franchisor's discretion.
  5. Evaluation and Certification:
    • Franchisees may also be certified to conduct training for their personnel, subject to meeting the franchisor’s operational and training standards.

Territory Protection

The franchisor does not grant exclusive territory protection to its franchisees. While an "Area of Primary Responsibility" is designated, it is not exclusive and does not prevent the franchisor or its affiliates from establishing additional franchises or company-owned locations in the area.

This means that franchisees could face competition from the franchisor or other franchisees operating under the same brand.

Furthermore, the franchise agreement outlines that the franchisor retains the right to compete within a franchisee's designated area.

This arrangement allows the franchisor to retain flexibility in expanding the brand but may limit the franchisee's control over their market. It underscores the importance for franchisees to consider potential competition as part of their operational strategy.

Number of units

2024
Franchised units

70

62

56

Company-owned units

526

552

582

Total units

596

614

638

Competitors

Black Rock Bar & Grill

Franchisees

?

15
+
0%
0%
Investment

?

$1,520,000 - $4,999,000

Native Grill and Wings

Franchisees

?

21
+
-9%
-9%
Investment

?

$1,210,000 - $2,329,000

Pepper Lunch

Franchisees

?

6
+
0%
0%
Investment

?

$714,000 - $1,501,000

Barrel House

Franchisees

?

1
+
n.a.
n.a.
Investment

?

$540,000 - $1,215,000

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Revenue (AUV)

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