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SUBJECT DOSSIER · FDD 2026

Newk's and Newk's Eatery

Quick Service Restaurants · disclosure-honesty grade · from public state filings

Disclosure honesty

B
Transparency 4 / 5

Newk's and Newk's Eatery discloses earnings (Item 19) — but the grade is how honestly. We graded it B.

Outlets97
Disclosed lawsuits0
Closure signals2 ceased
Investment
$927,500–$1,323,350
Total fees
6.75% of sales
Outlets
97
Closure signals
2 ceased, 0 terminated
Lawsuits
0
◢ FINDINGS
ITEM 20
2 outlets ceased operations
2 ceased operations in 2025; 7 transfers; minimal terminations indicate stability.

What their own earnings claim actually says

Company-owned restaurants: AUV $2.19M, EBITDA 16.18%. Franchised: AUV $2.36M. Data from 88 restaurants open since July 2023. Unaudited.

Is Newk's and Newk's Eatery worth it? — how it compares to 105 similar franchises

Ongoing fees6.75% of saleslower than most (median 8%)
Startup costfrom $927,500pricier than 79% of peers
Disclosure honestyGrade Bmore honest than 83% of quick service restaurants franchises
Closure rate2.1% of outletsworse than 60% of peers
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 Newk's and Newk's Eatery

The franchisor's framing: Company-owned restaurants: AUV $2.19M, EBITDA 16.18%. Franchised: AUV $2.36M. Data from 88… We reconstruct what an owner actually keeps, from their own FDD.

LOW
MEDIAN
HIGH

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Newk's and Newk's Eatery franchise — frequently asked

How much does a Newk's and Newk's Eatery franchise cost?
The FDD lists a total initial investment of about $927,500–$1,323,350, including a $40,000 initial franchise fee.
How much do Newk's and Newk's Eatery franchise owners make?
Company-owned restaurants: AUV $2.19M, EBITDA 16.18%. Franchised: AUV $2.36M. Data from 88 restaurants open since July 2023. Unaudited. We grade this disclosure B for honesty.
What is the Newk's and Newk's Eatery franchise failure rate?
2 ceased operations in 2025; 7 transfers; minimal terminations indicate stability.
Is a Newk's and Newk's Eatery franchise worth it?
It depends on the numbers, not the pitch. Newk's and Newk's Eatery scores B on disclosure honesty, carries about 6.75% 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 Newk's and Newk's Eatery or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.