TGI Fridays
Food & Beverage · Full-Service Restaurants
- Active units
- 80
- Royalty
- 5.0%
Franchised, year-end 2025
of weekly Net Sales
About TGI Fridays
TGI Fridays is an American restaurant chain renowned for its casual dining experience. Founded in 1965 by Alan Stillman in New York City, it initially aimed to offer a gathering place for young professionals seeking a lively atmosphere. Since then, TGI Fridays has grown into a global brand with multiple locations across the United States and in various countries around the world. The company's headquarters is currently located in Dallas, Texas. From there, they oversee the operations of their restaurants and manage their business strategies. TGI Fridays primarily focuses on providing a diverse menu of American-style cuisine with a wide range of appetizers, entrees, and desserts. Their signature dishes include Jack Daniel's Grill, Loaded Potato Skins, and their famous Fridays™ Original Burger. On a global scale, TGI Fridays has expanded its presence through various subsidiaries, joint ventures, and partnerships. In 2014, it was acquired by the private equity firm Sentinel Capital Partners and TriArtisan Capital Partners. This acquisition fostered further growth and development for the brand. In terms of market position, TGI Fridays is one of the leading casual dining restaurant chains globally. It competes with popular chains such as Applebee's, Chili's, and Buffalo Wild Wings. Notably, TGI Fridays has experienced several major events and achievements throughout its history. In 1997, it became one of the first restaurant chains to implement online ordering for takeout and delivery. Additionally, the company introduced the concept of Happy Hour, which offers discounted drinks and appetizers during specific hours, attracting customers in large numbers. Currently, TGI Fridays continues to expand its reach and adapt its offerings to meet the evolving preferences of consumers. The brand has implemented various strategies to attract a wider customer base, including introducing healthier menu options and enhancing its online ordering system. Overall, TGI Fridays has achieved a prominent global presence in the casual dining sector. Through continuous innovation and adapting to consumer demands, the company remains relevant and successful in the highly competitive restaurant industry.
Key terms
- Franchise fee
$50k
- Discretionary reduction
We may, in our discretion, reduce the Franchise Fee as a development incentive or for other business purposes.
- Brand fund
4.0% of Net Sales
- Local advertising
0.0% of Net Sales
- Footprint
2,000 – 4,000 sq ft
- Development Agreement Pre-Paid Franchise Fee
$100k
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2026.
Growth
- Total locations80
Franchised units open at year-end
- New openings28
Gross new units opened during the calendar year
- 1-year unit growth rate0.0%
Net unit growth versus prior year
- 3-year unit CAGR-21.3%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio1.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$2.6M
Average annual Gross Sales for franchised Fridays Restaurants operating for the full 2023 fiscal year.
- Annual unit volume (25th percentile)$1.9M
52 weeks ending Dec 25, 2023; excludes franchised non-traditional locations and units not open the full fiscal year, and excludes 13 franchised Restaurants tha…
- Annual unit volume (75th percentile)$3.1M
52 weeks ending Dec 25, 2023; excludes franchised non-traditional locations and units not open the full fiscal year, and excludes 13 franchised Restaurants tha…
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$2.7M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open5 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio0.9×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.