"Chili's" and "Chili's Grill & Bar" Franchise
Cost, fees, owner earnings, closure rate and litigation for a "Chili's" and "Chili's Grill & Bar" franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
"Chili's" and "Chili's Grill & Bar" discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
No financial performance representations disclosed. Franchisor explicitly states no representations about future or past outlet financial performance.
What a "Chili's" and "Chili's Grill & Bar" franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $60,000 | Item 5 — paid up front, before you open |
| Royalty | 1.25% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2.72% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 3.97% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $3,959,695 – $6,354,695 | Item 7 — franchisor's own low/high estimate |
Royalty 1.25%, Technical Services 2.75%, NAP 2.22% (max 4%), LAP min 2.5% (max 4%), Supplemental 0.10%.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
"Chili's" and "Chili's Grill & Bar" system size and owner turnover
| Total outlets | 1,208 |
| Ceased operations | 1 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 0.1% of outlets |
99 franchised outlets (2025); 6 ceased operations (2023-2025); 68 reacquired by franchisor (2024).
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is "Chili's" and "Chili's Grill & Bar" worth it? — how it compares to 436 similar franchises
| Ongoing fees | 3.97% of sales | lower than most (median 8%) |
| Startup cost | from $3,959,695 | pricier than 95% of peers |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 0.1% of outlets | better than most (median 1.5%) |
| Disclosed lawsuits | 1 | about average |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a "Chili's" and "Chili's Grill & Bar"
The franchisor's framing: No financial performance representations disclosed. Franchisor explicitly states no repres… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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"Chili's" and "Chili's Grill & Bar" franchise — frequently asked
- How much does a "Chili's" and "Chili's Grill & Bar" franchise cost?
- The FDD lists a total initial investment of about $3,959,695–$6,354,695, including a $60,000 initial franchise fee.
- How much do "Chili's" and "Chili's Grill & Bar" franchise owners make?
- "Chili's" and "Chili's Grill & Bar" discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the "Chili's" and "Chili's Grill & Bar" franchise fees?
- "Chili's" and "Chili's Grill & Bar"'s FDD discloses a $60,000 initial franchise fee, a 1.25% royalty on gross sales, a 2.72% advertising-fund contribution, for roughly 3.97% of gross sales in recurring fees before rent, labor, or debt service. Royalty 1.25%, Technical Services 2.75%, NAP 2.22% (max 4%), LAP min 2.5% (max 4%), Supplemental 0.10%.
- What is the "Chili's" and "Chili's Grill & Bar" franchise profit margin?
- "Chili's" and "Chili's Grill & Bar" discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the "Chili's" and "Chili's Grill & Bar" franchise failure rate?
- 99 franchised outlets (2025); 6 ceased operations (2023-2025); 68 reacquired by franchisor (2024).
- How many "Chili's" and "Chili's Grill & Bar" locations are there?
- "Chili's" and "Chili's Grill & Bar"'s FDD reports 1,208 total outlets, with 1 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does "Chili's" and "Chili's Grill & Bar" have complaints or lawsuits?
- "Chili's" and "Chili's Grill & Bar" discloses 1 legal matter in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a "Chili's" and "Chili's Grill & Bar" franchise worth it?
- It depends on the numbers, not the pitch. "Chili's" and "Chili's Grill & Bar" scores F on disclosure honesty, carries about 3.97% of sales in ongoing fees, and discloses 1 legal matters. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2025). FranchiseValidate is independent and not affiliated with "Chili's" and "Chili's Grill & Bar" or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.