WAHLBURGERS RESTAURANTS

Financial commitments hit hard for Wahlburgers: Item 7 estimates total investment at $1,530,000-$2,785,000, covering builds from 1,800-4,000 sq ft formats with full bars where licensed. Upfront franchise fee is $50,000, standard for the category, followed by 6% royalty plus 1% brand fund—aligning with gourmet burger peers but pressured by high capex in a competitive field. No Item 19 disclosure means no vetted revenue or profit benchmarks, forcing reliance on market comps where similar concepts average $1M-$1.5M AUVs; without this, estimating ROI stays speculative and risky for developers or single-unit buyers.

System health raises alarms: franchise locations dwindled to 21 from a 2023 peak of 97 total units (including 4 corporate), a brutal -88% contraction per Item 20, with just 2 terminations noted but low projected openings at 2 new units. Franchising since 2014 from Las Vegas HQ, the model targets fun, upscale burgers yet faces gourmet market saturation. For investors, this signals high execution risk—pouring $2M+ into a shrinking network lacks momentum, especially sans financial performance data; compare to stable rivals expanding 10-20% annually.