Outback Steakhouse

Item 7 in the FDD lays out a steep entry: initial investment from $4,260,000 to $9,043,000, starting with a $40,000 franchise fee. Ongoing costs bite hard at 5% royalty plus 2.5% brand/ad fund (noted as 2.49% multi-unit campaign), plus $180-$190 monthly tech/support fees for help desk, security, and Dine Rewards. With only 122 franchise locations versus 553 corporate-owned under Bloomin’ Brands in Tampa, the system skews heavily franchisor-controlled. The -3% dip from 126 franchised units in 2023 to 122 in 2024 signals caution—no explosive growth here for a concept franchising since 1993.

No Item 19 means no disclosed average revenues or profits, a red flag for buyers facing seven-figure outlays in competitive casual dining. Without earnings transparency, you're blind to unit-level performance amid industry pressures like rising food costs and shifting consumer tastes. Corporate dominance offers brand muscle but limits franchisee input; investigate recent terminations, transfers, and Bloomin’ Brands’ pipeline for new units to gauge if Outback’s steak-focused model can carve out returns justifying the massive capital risk.