Logan’s Roadhouse is a well-established American casual dining restaurant chain founded in 1991 in Lexington, Kentucky. Headquartered in Houston, Texas, the brand operates over 130 locations across 22 states. Known for its retro-style decor and locality-inspired artwork, Logan’s Roadhouse offers a menu centered on mesquite-grilled steaks, ribs, burgers, chicken, seafood, and traditional American fare including homemade yeast rolls and cold beer. The atmosphere is designed to be welcoming and family-friendly, making it a popular choice for casual dining.
The company has experienced various ownership changes and financial challenges, including bankruptcy in 2016 and again in 2020, but has since stabilized under the ownership of SPB Hospitality. Logan’s Roadhouse continues to focus on quality food and a consistent dining experience, supported by initiatives such as the Grill Master Certification program to ensure high culinary standards across all locations.
Logan’s Roadhouse Franchise Cost
Starting a Logan’s Roadhouse franchise requires a significant financial investment. The initial franchise fee is $40,000. The total initial investment ranges from approximately $1.37 million to $3.3 million, covering expenses such as real estate, equipment, supplies, and other startup costs. Franchisees must also meet financial qualifications, including a minimum net worth of $1.5 million and liquid assets between $500,000 and $1.5 million.
Ongoing fees include a royalty fee of 4% of gross sales and a brand fund contribution of 2% of sales. Additionally, franchisees are required to spend at least 1% of sales on local marketing efforts. For those interested in developing multiple locations, an area developer agreement is available, with a development fee of 50% of the initial franchise fee per additional location.
Logan’s Roadhouse Franchise Conditions
Logan’s Roadhouse seeks franchise candidates who demonstrate strong business acumen and preferably have restaurant or multi-unit franchise ownership experience, although prior restaurant ownership is not mandatory. Candidates should have substantial financial resources, with preferred liquid assets exceeding $750,000 and net worth over $1.5 million. The franchisor emphasizes that success depends on the franchisee’s skill, effort, and dedication to the business.
Absentee ownership is not allowed; franchisees are expected to be actively involved in the daily operations. Exclusive territories are available, and the franchisor provides comprehensive support to ensure consistency and quality across all locations.
Logan’s Roadhouse Franchise Process
The franchise approval and opening process is structured and typically takes between 45 days to complete the approval phase, assuming timely submission of all required documents. The steps include:
Initial discussions about desired markets and franchisee qualifications.
Execution of a Non-Disclosure Agreement (NDA).
Delivery and review of the Franchise Disclosure Document (FDD) with a mandatory 14-day review period.
Submission of a formal franchise application.
Video interviews and meetings with the franchisor’s team.
Participation in a Discovery Day to visit existing restaurants and meet the team.
Final approval and execution of franchise agreements.
After signing the franchise agreement, opening a new location generally takes between 7 to 18 months, depending on site selection and whether the location is a conversion or a new build.
Logan’s Roadhouse Franchise Profit
While specific profit figures vary by location and management, Logan’s Roadhouse reported a total revenue of approximately $700 million in 2022 with a net income of $20 million across all corporate-owned locations. Franchise profitability depends on multiple factors including location, operational efficiency, and market conditions. The franchisor does not guarantee profits but provides ongoing support including marketing, operational training, and site selection assistance to maximize franchisee success.
Franchisees benefit from a strong brand presence and a loyal customer base, which can translate into steady revenue streams when managed effectively. The royalty and marketing fees are competitive within the casual dining industry, allowing franchisees to reinvest in local marketing and operational improvements to drive profitability.
Conclusion
Logan’s Roadhouse offers a robust franchise opportunity for experienced and well-capitalized entrepreneurs interested in the casual dining steakhouse market. With a strong brand identity, comprehensive franchisor support, and a proven business model, it stands as a compelling option for those ready to invest between $1.37 million and $3.3 million. The franchise process is thorough but efficient, designed to ensure that franchisees are well-prepared to operate successful restaurants. While profitability is influenced by multiple factors, Logan’s Roadhouse’s established market presence and ongoing brand initiatives provide a solid foundation for franchise growth and success.
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