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JOHNNY ROCKETS
Johnny Rockets operates retro-style diner restaurants offering made-to-order hamburgers, crispy fries, hand-spun shakes, malts, chili, sandwiches, and other classic American menu items, with some locations serving breakfast, beer, wine, or alcohol, across full-service casual-dining to fast-casual 'pay-first' models. The franchisor licenses the Johnny Rockets System, including proprietary designs, operations, training, and approved vendors, through single-unit or multi-unit development agreements requiring franchisees to build and operate restaurants according to specified schedules. It targets consumers seeking nostalgic 1950s diner experiences with quality comfort food in competitive quick-service and fast-casual markets.
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Franchise Costs
Financial Performance
Item 19 Financial Performance
Data Based On: 58 U.S. franchised Restaurants open from January 1, 2024 to December 31, 2024
* Average gross revenue and median gross revenue are from Table 1 'Net Sales' 'Total' row. Best guess profit range calculated by applying the minimum and maximum combined percentages of Food Cost (Table 3) and Labor Cost (Table 4) to the average gross revenue. Best guess profit low = Average Gross Revenue * (1 - (Max Food Cost % + Max Labor Cost %)) = $1,643,107 * (1 - (0.3965 + 0.6396)) = -$59,316. Best guess profit high = Average Gross Revenue * (1 - (Min Food Cost % + Min Labor Cost %)) = $1,643,107 * (1 - (0.1773 + 0.1773)) = $1,060,461. The document explicitly states that other operating costs and expenses are omitted from these calculations, meaning these figures represent revenue after only food/paper and store-level labor costs, and not full net profit or EBITDA.
Extracted Item 19 Section
Avg. Revenue: $1,643,107
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Unlock financial performance dataJOHNNY ROCKETS Franchise Analysis
Picture hopping into a time machine for 1950s diner vibes amid today's fast-casual scrum—Johnny Rockets delivers that nostalgic punch with burgers and shakes. Yet Item 19 lays bare revenue spreads that could make or break your diner dreams, while SBA loan records whisper of real-world stumbles. Does this classic brand still rocket upward, or is the engine sputtering?
Franchising since 1987 under FAT Brands, Johnny Rockets peaked at 100 locations in 2023 before dipping to 98 franchise units (plus 2 corporate) in 2024—a 2% contraction flagged in the FDD. Projected openings sit at just 2 new units, with 3 system transfers hinting at operator churn rather than explosive growth. Litigation notes reveal rescissions of development deals and claims of breach plus fraudulent misrepresentation, compounded by the system's bankruptcy history—clear tremors in an otherwise stable retro empire.
Economics hit hard: $50,000 franchise fee atop $517,300-$2,667,900 initial outlay, per Item 7. Item 19 discloses average gross sales of $1,643,107 and median $1,065,910 across units, but estimated profits swing from a -$59,316 loss to $1,060,461—volatility screaming high-risk for franchisees. SBA data underscores it: 21 loans averaging $558,281, yet a 14.3% default rate dwarfs industry norms, signaling cash flow squeezes in competitive markets. For investors eyeing nostalgia plays, this data paints a fading star demanding ironclad location scouting and capital buffers.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How JOHNNY ROCKETS Compares
Key Insights
- Lower than average SBA loan default rate in Fast Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
JOHNNY ROCKETS Current | $517K – $2.7M | $50K | N/A | 98 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| LITTLE CAESARS | $377K – $1.8M | $20K | 6.0% | 3,788 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| KFC (NON-TRADITIONAL) | $1.2M – $4.2M | $45K | N/A | 3,404 |
| SONIC DRIVE-IN | $1.5M – $2.5M | $15K | 5.0% | 3,120 |
Fast Food Average 132 franchises | $602K – $1.6M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 132 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+13 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for JOHNNY ROCKETS franchisees (2010 – 2021)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
21 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
99 franchisee contacts on file from official FDD filings.
99 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Rescission of multi-unit development agreement and breach of contract/fraudulent misrepresentation in franchise sale.
Bankruptcy (Item 4)
Franchisor (Johnny Rockets Licensing, LLC, Case No. 26-90250), parent, and affiliates filed Chapter 11 on January 25, 2026, in U.S. Bankruptcy Court for the Southern District of Texas.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a JOHNNY ROCKETS franchise ranges from $517,300 to $2,667,900. This includes a franchise fee of $50,000.
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