FRANCHISE·WATCH·DESK

Sample data — illustrative, not for citation

Cracker Barrel

casual-dining · Cracker Barrel Old Country Store · est. 1969

Cracker Barrel is a full-service restaurant and country-store concept serving homestyle Southern food alongside an attached retail gift shop. An operator runs a large roadside restaurant with table service and retail, serving travelers and families.

Cracker Barrel net unit count declined -2.4% from 20232025 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Not enough disclosure

Distress

9
STABLE

No verified FDD extraction to judge from. Any figures shown are labelled sample data or independent federal records.

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Weak
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Fair
Transfer / churn15%

transfers vs. base · Table 3

Strong
Promise-keeping10%

actual vs. projected openings · Table 5

Fair
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2023–2025

-2.4%
1,23520231,21820241,2052025

Survival record

FDD Item 20 · outlet status by year

Show the outlet tables
Status (FTC)202320242025
Outlets at start1,2541,2351,218
Opened131212
Transfers292726
Terminations201817
Non-renewals676
Reacquired by franchisor988
Ceased — other reasons181615
Outlets at end1,2351,2181,205
Net change-19-17-13

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

To open (Item 7)

$3M–$7M

all-in investment range

Franchise fee (Item 5)

$0

upfront, one-time

Royalty (Item 6)

0%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$0

0% of sales, before profit

Over a 10-yr term

$0

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for Cracker Barrel with an independent CPA

Labor record

US Dept. of Labor enforcement · franchisee-level · FY2005–present

Federal investigators have concluded 13 wage cases against operators of this system, recovering $7K in back wages for 3 workers, including 1 child-labor case. Some of these cases are recent, not ancient history. These cases name franchisee-owned locations, not the franchisor itself.

Concluded cases

13

Back wages owed

$7K

Employees affected

3

Since 2020

3

1 of these cases involved child-labor violations, covering 1 minors across the system's franchised locations.

Read this carefully. The employers in these cases are individual Cracker Barrel franchisees — separately owned businesses operating under the brand name — not Cracker Barrel itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2025.

Distress signals

news-sourced · bankruptcies, closures, lawsuits

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Is Cracker Barrel a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk