Texas Roadhouse franchise
2024 filing · March 31, 2024Fewer locations
Texas Roadhouse at a glance
A casual steakhouse serving steaks, ribs and full bar service. At the end of 2023 there were 638 Texas Roadhouse locations in the US, 56 franchised and 582 company-owned, so most are run by the company itself.
The business
- Franchisor
- Texas Roadhouse Development Corporation
- The company that sells the franchises
- Current franchisor selling since
- 1995
- 29 years of selling franchises
- First location
- 1993
- Franchisor based in
- Louisville, Kentucky
- Typical size
- 7,000–10,500 sq ft
What you pay
- Cost to open
- $5.4M–$7.9M
- A new restaurant, not counting land
- Franchise fee
- $40,000
- Paid $15,000 at signing and $25,000 four weeks before opening
- Royalty
- 4%
- 4% of royalty sales, paid monthly, plus 2% on local marketing
- Brand fund
- 0.3%
- 0.3% of royalty sales, paid monthly; it can rise to 2.5%
- Renewal fee
- The greater of 30%
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 638
- Franchised and company-owned
- Franchised
- 56
- Company-owned
- 582
- Change in 3 years
- −13
- Franchised locations, 2021–2023
- States
- 49
- Most in Texas, Florida and Ohio
From Texas Roadhouse Development Corporation’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Texas Roadhouse among all franchises with the same figure.
| Figure | Texas Roadhouse | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $6,649,000 | Costs more than 97% of franchises |
| Franchise feePaid once, when you sign | $40,000 | Lower than 46% of franchises |
| RoyaltyShare of sales paid to the franchisor | 4% | Lower than 93% of brands with a set rate |
| US locationsFranchised and company-owned | 638 | More than 96% of franchises |
How much a Texas Roadhouse franchise costs
Opening a new restaurant, not counting land costs an estimated $5,396,500 to $7,901,500. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: Texas Roadhouse Development Corporation, 2024 filing, page 20
Texas Roadhouse franchise fee
The franchise fee is $40,000, paid $15,000 at signing and $25,000 four weeks before opening. You pay it when you sign the franchise agreement.
Source: Texas Roadhouse Development Corporation, 2024 filing, page 11
Royalty and ongoing fees
| Royalty | 4% of royalty sales, paid monthly, plus 2% on local marketing. |
|---|---|
| Brand or marketing fund | 0.3% of royalty sales, paid monthly; it can rise to 2.5%. |
| Renewal Fee | The greater of 30% |
| Local Marketing | 2% of Royalty Sales |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Texas Roadhouse Development Corporation, 2024 filing, pages 12 and 13
Other fees as filed, from pages 12–16. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Texas Roadhouse does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Texas Roadhouse Development Corporation, 2024 filing, page 50
- Estimate Estimated yearly sales per location
- $4.3M–$7.5M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
SBA loans to Texas Roadhouse franchisees
Lenders approved 5 SBA-backed loans for Texas Roadhouse franchisees from 1997 to 2024, $4.03M in all: 2 7(a) loans and 3 504 loans. All 4 that have ended were paid in full; none was charged off. The other one hasn’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2023 / 2021–2023. Typical means the median: half of brands are above it, half below.
| Measure | Texas Roadhouse | Typical restaurant brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | −9.7% / −19% | 0% / +3% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 1.6% / 1.4% | 2.5% / 13% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 13% / 23% | 0% / 0% | 0% / 0% |
Typical restaurant brand is the median of the 301 brands in restaurant franchises with three years of counts.
How Texas Roadhouse compares
Of the 813 restaurant franchises on this site, Texas Roadhouse is the most expensive to open and the 44th largest by number of locations.
| Figure | Texas Roadhouse | Typical restaurant brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $5.4M | $408K | $222K |
| Cost to open, high end | $7.9M | $866K | $477K |
| Franchise fee | $40K | $35K | $40K |
| Royalty | 4% | 5% | 6% |
| Brand fund | 0.3% | 2% | 2% |
| US locations | 638 | 14 | 21 |
| Shares earnings figures | No | 474 of 813 | 2,147 of 3,352 |
Typical is the median across the 813 brands in restaurant franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 70 (+1) | 526 | +1 | 0 |
| 2022 | 62 (−8) | 552 | 0 | −8 |
| 2023 | 56 (−6) | 582 | +3 | −9 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating. Counts are U.S. restaurants only.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: Texas Roadhouse Development Corporation, 2024 filing, page 51
Where Texas Roadhouse locations are
At the end of 2023, Texas Roadhouse had locations in 49 states. The most are in Texas, Florida and Ohio.
- Texas73
- Florida41
- Ohio35
- Pennsylvania33
- Indiana26
- Michigan22
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Texas | 5 | 68 | 73 |
| Florida | 0 | 41 | 41 |
| Ohio | 1 | 34 | 35 |
| Pennsylvania | 6 | 27 | 33 |
| Indiana | 8 | 18 | 26 |
| Michigan | 3 | 19 | 22 |
| New York | 0 | 22 | 22 |
| Virginia | 0 | 20 | 20 |
| Arizona | 0 | 19 | 19 |
| California | 11 | 8 | 19 |
All 49 states
Source: Texas Roadhouse Development Corporation, 2024 filing, page 52
Who owns Texas Roadhouse?
Texas Roadhouse franchises are sold by Texas Roadhouse Development Corporation. It has been a subsidiary of Texas Roadhouse, Inc. since 2004, a public company whose shares trade on Nasdaq as TXRH.
From Texas Roadhouse Development Corporation’s 2024 filing, page 7.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Texas Roadhouse Development Corporation, 2024 filing, litigation on page 10, bankruptcy on page 10
Texas Roadhouse filings
The figures on this page come from Texas Roadhouse Development Corporation’s 2024 filing, issued March 31, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | March 31, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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Texas Roadhouse is also on these lists: food franchises.