From the filings

HQ-led decisions

Texas Roadhouse Development

Full service restaurant

Texas Roadhouse Development requires every restaurant to buy its point-of-sale software, hardware and installation services through the franchisor itself, with certified software required on every POS terminal and server. Across 638 restaurants — only 56 franchised against 582 company-owned — that purchasing decision is concentrated at Texas Roadhouse headquarters, not at the individual unit.

For software vendors selling into US franchise brands.

Live signals

Total units
638
56 franchised
Unit growth YoY
-9.677%
vs prior filing
AUV
—
Item 19, 2024
Royalty
4%
of gross sales
Ad fund
0.3%
national + local
Initial fee
$40K
per unit
Investment range
$3.89M–$7.90M
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
No claims
from the filing

Ongoing fee load

What the operator pays every month

The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.

4.3%of gross sales (FY2024)

Ongoing fees: 4.3% of gross sales (FY2024)Royalty 4%, Ad fund 0.3%. Total 4.3% of gross sales. Drawn against a 15% reference scale.

15% reference

Royalty 4%Ad fund 0.3%

Franchisor behaviours

What the franchisor requires

27 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 5 questions the text does not settle, which is not a no.

Accounting

Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?

Yes

Item 11

We will have independent access to the information generated and stored in the POS System and your other computer systems used in the Restaurant.

Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?

Yes

Franchise agreement

Franchisee shall, at Franchisee’s expense, submit to Franchisor, in the form prescribed by Franchisor, a balance sheet and profit and loss statement for each fiscal quarter (which may be unaudited) for Franchisee on or before the thirtieth (30th) day of the month following the end of each fiscal quarter during the…

How the franchisor buys

Is the franchisor or an affiliate itself a supplier of required products, services or systems?

Yes

Item 8

We and/or our affiliate, Holdings, are approved suppliers for some of these items, as further described below, but are not the only approved suppliers.

Does the franchisor reserve the right to change designated suppliers or systems at any time?

Yes

Franchise agreement

Franchisor reserves the right, at its option, to re-inspect from time to time the facilities and products of any such approved supplier and to revoke its approval upon the supplier’s failure to continue to meet any of Franchisor’s then-current criteria.

How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?

0

Item 8

During the 2023 fiscal year, neither we nor Holdings received any revenues on account of franchisee purchases of these items.

Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?

Yes

Item 8

We and our affiliates may derive revenue from certain of your purchases with suppliers that were approved or designated by us.

Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?

90

Item 8

We estimate that approximately, [90% to 95%] of your expenditures for leases and purchases (exclusive of land acquisition, lease, and development costs) in establishing and operating your Restaurant on an ongoing basis will be for goods and services that are subject to sourcing restrictions (that is, for which…

Does the franchisor charge a fee to evaluate a proposed supplier?

Yes

Item 8

You or the supplier must pay the cost of the inspection and the cost of the test.

Can a franchisee propose a new supplier for the franchisor's approval?

Yes

Item 8

If you wish to purchase, lease or use any items from a supplier we have not approved, you must submit a written request for approval to us, or must ask the supplier to do so.

Communications

Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?

Yes

Franchise agreement

M. Franchisor’s Option to Acquire Telephone Numbers and Other Business Listings.

Data and IT

Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?

Yes

Item 11

You are required, at all times, to be compliant with the applicable Payment Card Industry Data Security Standards, hereinafter referred to as “PCI-DSS,” and all requirements therein.

Franchise management

Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?

Yes

Item 11

Visit the Restaurant and evaluate its products and services at times we reasonably determine (Franchise Agreement, Section 5.F.);

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Franchise agreement

Franchisor may from time to time revise the contents of the Manuals and the contents of any other manuals and materials created or approved for use in the operation of the franchised business.

Must the franchisor approve the franchisee's site or location before opening?

Yes

Franchise agreement

No site may be used for the Location of the Restaurant unless it is first approved in writing by Franchisor

Marketing

Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?

Yes

Item 11

You must spend 2% of the Royalty Sales of the Restaurant each month on marketing for the Restaurant in its Area of Primary Responsibility.

Must the franchisee participate in a customer loyalty or rewards program?

Yes

Item 16

You must participate in, and comply with the requirements of, any gift card, gift certificate, customer loyalty or retention program that we implement, at your expense, for all or part of the franchise System

Must the franchisee participate in a regional advertising cooperative when one exists?

Yes

Item 11

If a Cooperative has been established for a geographic area where your Restaurant is located when the Franchise Agreement is signed, or if any Cooperative is established during the term of the Franchise Agreement, you must sign all documents we request and become a member of the Cooperative.

Operations

Must the franchisee buy products from a designated distributor?

Yes

Item 8

You must purchase all of your requirements for these items and other proprietary items we may designate from us or a supplier we designate.

Payments

Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?

Yes

Item 11

Our authorized provider is our approved vendor for internet access that allows data transmission and credit card and gift card processing via our approved payment processor.

Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?

Yes

Item 6

You must let us withdraw the royalty fee and your Marketing Fund contribution from your designated bank account by electronic fund transfer (“EFT”).

Must the franchisee participate in a gift card program?

Yes

Item 16

You must participate in, and comply with the requirements of, any gift card, gift certificate, customer loyalty or retention program that we implement, at your expense, for all or part of the franchise System

People

Does the franchisor require minimum staffing levels or specific roles?

Yes

Item 11

A total of four to five people must be trained to manage the new Restaurant.

Must employees wear uniforms specified by the franchisor?

Yes

Franchise agreement

To comply with Franchisor’s dress and grooming requirements, including a requirement that all of Franchisee’s employees wear uniforms that have been approved by Franchisor.

Point of sale

Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?

Yes

Item 11

You must purchase the Texas Roadhouse-authorized and required point of sale system, (the “POS System”).

Does the franchisor have independent access to the data in the franchisee's POS or computer system?

Yes

Item 11

We will have independent access to the information generated and stored in the POS System and your other computer systems used in the Restaurant.

Training

Can the franchisor charge the franchisee for additional, refresher or remedial training?

Yes

Item 6

Additional Training At our option, a After additional We may charge a fee for additional training reasonable fee that training programs and seminars, which may include will be determined Operational, administrative, POS and computer for each program training.

Is attendance at an annual convention or conference mandatory for the franchisee?

Yes

Franchise agreement

In addition, Franchisor may from time to time require certain personnel employed by Franchisee to attend periodic system-wide meetings held at locations designated by Franchisor to address matters of general interest to the System.

The filing answers no to 2 questions
  • Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
  • Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Franchise agreement

The vendor opportunity at Texas Roadhouse Development

The Texas Roadhouse system spans 638 restaurants: 56 franchised and 582 company-owned by Texas Roadhouse Development's affiliates, part of Texas Roadhouse's strategic multi-brand portfolio alongside Jaggers. Franchised outlets fell 9.7% year over year. Royalty runs at 4.0% of sales, and the 2024 FDD carries no Item 19 financial performance representation.

Who controls software purchasing

Officers named in the filing include Gerald L. Morgan, President of TRDC and CEO of TXRH; David "Christopher" Monroe, Treasurer of TRDC and CFO of TXRH; Christopher C. Colson, Secretary of TRDC and Chief Legal and Administrative Officer of TXRH; and Hugh J. Carroll, Vice President of TRDC and JDC. The mapped franchised operator base is small: 55 operators, 2 of them multi-unit, across roughly 63 located units, led by California (10), Indiana (8), Pennsylvania (6) and Texas (5). With software, hardware and installation purchased through the franchisor itself, the buying decision sits with Texas Roadhouse headquarters rather than any individual restaurant, franchised or company-owned.

Tech named in the FDD, and what is actually required

Every restaurant must purchase the Texas Roadhouse-authorized and required point of sale system, with the software, hardware and installation services purchased through the franchisor, which may contract portions out to approved vendors. Restaurants must also purchase Help Desk Support and hardware support from Texas Roadhouse's IT department or its pre-approved Help Desk provider, must run only Texas Roadhouse-approved and certified software on POS terminals, back-office PCs and servers, and must purchase a support agreement for each piece of POS and back-of-house software installed. Back-office software must be licensed from Texas Roadhouse or one of its certified vendors, and internet access, credit card and gift card processing route through the franchisor's authorized provider and approved payment processor. Restaurants must also participate in the electronic gift card program using the company-approved system, have network wiring installed through the IT Help Desk by an approved cabling installer, and store data on Texas Roadhouse hosted platforms such as the BOH computer and Office 365.

Procurement, renewals, and timing

Texas Roadhouse Development generally does not require franchisees to buy from the franchisor, but requires certain items — special recipe and proprietary products, back-office software, and upgrades to franchisor-developed software — to come from itself or a designated or certified vendor. Franchisees may propose an alternate supplier for approval. The renewal term runs 5 years and requires 6 to 12 months' notice, repairing and updating equipment, maintaining possession of the premises, paying a renewal fee, and signing the then-current agreement and a general release.

How to read the Texas Roadhouse Development FDD

The embedded PDF viewer below holds Texas Roadhouse Development's 2024 Franchise Disclosure Document. Item 11 sets out the POS and computer system requirements in full; Item 8 covers the approved-supplier rules. Talk to FranCloud for a ranked target list of full-service restaurant brands with a franchisor-purchased POS relationship.

Questions vendors ask

Texas Roadhouse Development, answered from the filing

Purchasing runs through Texas Roadhouse Development and Texas Roadhouse leadership, including President and CEO Gerald L. Morgan and Treasurer and CFO David "Christopher" Monroe; the required POS system is bought through the franchisor, not chosen by individual restaurants.
The FDD requires the Texas Roadhouse-authorized point of sale system, with software, hardware and installation purchased through the franchisor, plus Texas Roadhouse-approved and certified software on all POS terminals, back-office PCs and servers, and a support agreement for each piece installed.
638 restaurants make up the system: 56 franchised and 582 company-owned, with franchised restaurants at the end of 2023 including 11 in California and 8 in Indiana.
An approved-supplier list. Franchisees generally have no obligation to buy from the franchisor, but Texas Roadhouse requires certain items — including proprietary recipe products and back-office software — to come from itself or a designated or certified vendor, and franchisees may propose an alternate supplier for approval.
Franchise renewal requires 6 to 12 months' notice, repairing and updating equipment, and paying a renewal fee under a franchise agreement with a 5-year renewal term — a recurring point for revisiting the franchisor-purchased POS relationship.
The embedded viewer below holds Texas Roadhouse Development's 2024 Franchise Disclosure Document. Item 11 covers the POS and computer system requirements; Item 8 covers the approved-supplier rules.
Source

Read the filing itself

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Texas Roadhouse Development2024 FDDView only

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The brands you can actually sell into, from the filings.

Operator footprint

Who runs the locations

55 operators run 63 mapped locations. 2 of them are multi-unit. Aggregate counts from the filing; no names.

Operators by units owned

Single-unit53
2–9 units2

Top states by locations

CA10
IN8
MD6
PA6
TX5

Ownership

The portfolio behind Texas Roadhouse Development

strategic_multibrand of Texas Roadhouse.

Sibling brands

Related Full service restaurant brands

Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.