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SUBJECT DOSSIER · FDD 2026

CHOPT® Franchise

Cost, fees, owner earnings, closure rate and litigation for a CHOPT® franchise — pulled from the franchisor's own public FDD (2026), not its sales material.

Quick Service Restaurants · disclosure-honesty grade · from public state filings
GRADE D · WEAK DISCLOSURE

Disclosure honesty

D
Transparency 2 / 5

CHOPT® discloses earnings (Item 19) — but the grade is how honestly. We graded it D.

Outlets4
Disclosed lawsuits0
Closure signals0 ceased
Investment
$815,250–$2,575,250
Total fees
5% of sales
Outlets
4
Closure signals
0 ceased, 0 terminated
Lawsuits
0
◢ FINDINGS
ITEM 19
Grade D disclosure
The disclosed numbers are incomplete or framed to look better than an owner's real take-home.

What their own earnings claim actually says

Gross Sales, Food Cost Margin (29.5% avg), Hourly Labor Margin (17.6% avg) for mature affiliate-owned restaurants. 4 non-traditional locations. No franchisee cost data provided.

What a CHOPT® franchise actually costs to run

FeeDisclosedWhere it comes from
Initial franchise fee$30,000Item 5 — paid up front, before you open
Royalty5% of gross salesItem 6 — charged on revenue, not profit
Total recurring fees5% of gross salesBefore rent, labor, food or debt service
Total initial investment$815,250 – $2,575,250Item 7 — franchisor's own low/high estimate

5% weekly royalty on Gross Sales. $30k initial fee waived for one 2025 franchisee. Multiple ancillary fees including training, software, relocation, compliance.

Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.

CHOPT® system size and owner turnover

Total outlets4
Ceased operations0
Terminated by franchisor0
Transferred to new owners0
Closure rate0.0% of outlets

Minimal system scale (1 franchised, 3 company-owned non-traditional outlets). Insufficient franchisee data.

From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.

Is CHOPT® worth it? — how it compares to 164 similar franchises

Ongoing fees5% of saleslower than most (median 8%)
Startup costfrom $815,250pricier than 78% of peers
Disclosure honestyGrade Dless honest than most of the category
Closure rate0.0% of outletsbetter than most (median 1.3%)
Disclosed lawsuits0fewer than most

Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

Owner take-home for a CHOPT®

The franchisor's framing: Gross Sales, Food Cost Margin (29.5% avg), Hourly Labor Margin (17.6% avg) for mature affi… We reconstruct what an owner actually keeps, from their own FDD.

LOW
MEDIAN
HIGH

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CHOPT® franchise — frequently asked

How much does a CHOPT® franchise cost?
The FDD lists a total initial investment of about $815,250–$2,575,250, including a $30,000 initial franchise fee.
How much do CHOPT® franchise owners make?
Gross Sales, Food Cost Margin (29.5% avg), Hourly Labor Margin (17.6% avg) for mature affiliate-owned restaurants. 4 non-traditional locations. No franchisee cost data provided. We grade this disclosure D for honesty.
What are the CHOPT® franchise fees?
CHOPT®'s FDD discloses a $30,000 initial franchise fee, a 5% royalty on gross sales, for roughly 5% of gross sales in recurring fees before rent, labor, or debt service. 5% weekly royalty on Gross Sales. $30k initial fee waived for one 2025 franchisee. Multiple ancillary fees including training, software, relocation, compliance.
What is the CHOPT® franchise profit margin?
CHOPT® does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross Sales, Food Cost Margin (29.5% avg), Hourly Labor Margin (17.6% avg) for mature affiliate-owned restaurants. 4 non-traditional locations. No franchisee cost data provided. Recurring fees alone take about 5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
What is the CHOPT® franchise failure rate?
Minimal system scale (1 franchised, 3 company-owned non-traditional outlets). Insufficient franchisee data.
How many CHOPT® locations are there?
CHOPT®'s FDD reports 4 total outlets, with 0 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 CHOPT® have complaints or lawsuits?
CHOPT® discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
Is a CHOPT® franchise worth it?
It depends on the numbers, not the pitch. CHOPT® scores D on disclosure honesty, carries about 5% of sales in ongoing fees. Get the real owner take-home before you sign.

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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with CHOPT® or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.