Texas Roadhouse Franchise FDD, Costs & Fees (2024)
KEY FRANCHISE STATS
All you need to know about this franchise in a snapshot
Initial franchise fee
$40,000
Investment required
$2,648,000 - $6,802,000
Texas Roadhouse: Serving Legendary Steaks with a Southern Flair
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 |
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Franchise Disclosure Document
Training
The franchisor provides extensive training to ensure the effective operation of the franchise. Here are the key aspects:
- 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.
- 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.
- 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.
- 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.
- 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.
