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.
Franchise Costs
Financial Performance
Item 19 Financial Performance
Data Based On: 58 U.S. franchised Restaurants that were open from January 1, 2024 to December 31, 2024.
* Calculated weighted average for revenue quartiles by averaging the Min and Max values of the highest and lowest revenue segments respectively. Best guess profit range calculated from average gross revenue ($1,643,107), known average food cost (26.83%) and labor cost (32.09%), and an estimated additional 15-30% for unstated operating expenses (e.g., rent, utilities, marketing, admin) as the document states other costs are omitted. High estimate assumes 15% additional costs (100% - 58.92% - 15% = 26.08% profit margin). Low estimate assumes 30% additional costs (100% - 58.92% - 30% = 11.08% profit margin).
Extracted Item 19 Section
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 |
| 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 |
| JIMMY JOHN'S | $366K – $734K | $35K | 6.0% | 2,737 |
Fast Food Average 129 franchises | $608K – $1.6M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 129 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
SBA 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.
Franchisee Contacts
99 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
99 Contacts Available
Unlock all JOHNNY ROCKETS franchisee contacts with verified contact information
Due 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
Frequently 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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