Risk Score
Pending analysis
Investment Range
$1,080,000 - $2,765,000
Franchise Fee
$40,000
Total US Locations
110
Business Summary
Wahlburgers Restaurants operate as burger-oriented dining establishments that offer high-quality gourmet hamburgers and various branded merchandise, such as clothing, souvenirs, and novelty items. These restaurants are typically situated in Native American tribal locations and feature a contemporary, casual atmosphere that highlights the celebrity Wahlberg family connection. Wahlburgers focuses on distinctive decor, specific menu items, unique recipes, and precise food preparation and service techniques.
Corporate History
NativeWahl LLC was established on October 8, 2021, as a Michigan limited liability company. Its sole purpose is to subfranchise Wahlburgers Restaurants in Native American tribal locations throughout the United States. NativeWahl is wholly-owned by Native Source Restaurant Group, LLC, a tribally-owned company. NativeWahl began offering subfranchises in December 2021. Wahlburgers Franchising LLC (WF), the franchisor, was formed earlier on April 9, 2014, in Massachusetts. WF operates under its company name and the trade name 'Wahlburgers,' and has been offering Wahlburgers franchises in the United States since August 2014. WF is a wholly-owned subsidiary of Wahlburgers Holding Company LLC. While WF's affiliates operate Wahlburgers Restaurants, WF itself has never directly operated a restaurant.
Financial Overview
Investment Range
$1,080,000 - $2,765,000
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$60,000
Royalty %
8%
Marketing %
0.5%
Equipment Costs (Low)
$930,000
Equipment Costs (High)
$2,335,000
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD's 'Special Risks' section raises concerns about NativeWahl LLC's financial condition, stating that its 'negative net worth' calls into question its ability to provide services and support. However, NativeWahl's audited balance sheets actually show positive Members' Equity for both 2022 and 2023, despite experiencing net losses in those years. The auditors for NativeWahl LLC issued an unmodified (unqualified) opinion for its financial statements for 2023 and 2022, and did not include a going concern qualification. Wahlburgers Franchising LLC also received an unqualified audit opinion for its 2023 and 2022 financial statements, and its auditors did not express a going concern qualification, even though the company recorded a net loss in 2023 following net income in 2022.
Financing Details
Wahlburgers and NativeWahl LLC do not offer any direct or indirect financing to subfranchisees. Neither entity guarantees any subfranchisee's notes, leases, or other obligations. Subfranchisees must secure their own funding for the business.
Performance Metrics
Total US Locations
110
Franchised Units
106
Corporate Units
4
Avg Square Footage
2,700
Franchising Since
2014
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
NativeWahl LLC, the subfranchisor, has no litigation to report. Wahlburgers Franchising LLC (WF), the franchisor, was involved in one lawsuit. This case, Leonard v. Wahlberg, was filed in February 2017 in Massachusetts Superior Court by minority owners of WF's parent company, Wahlburgers Holding Company, LLC. The plaintiffs alleged breach of fiduciary duty, breach of an operating agreement, and misrepresentation of business opportunities. This action was settled in June 2019, with one of the defendants agreeing to acquire the plaintiff's interest, and the case was dismissed with prejudice in July 2019.
Bankruptcy History
NativeWahl LLC and Wahlburgers Franchising LLC have no bankruptcy information required to be disclosed in this FDD. Neither the subfranchisor nor the franchisor, nor their management, have been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
20 years
Renewal Term
10 years
Renewal Conditions
To renew their Wahlburgers Subfranchise Agreement, franchisees must provide written notice between 12 and 18 months before the current term ends. They must have substantially complied with the existing agreement and not be in default under any agreements with NativeWahl or its affiliates, or under any leases, financing instruments, or supplier agreements. Franchisees must also have the right to continue operating at their current location for the entire successor term. Additionally, they are required to renovate and modernize their Wahlburgers Restaurant to reflect current brand image, sign a general release of claims, complete any new mandatory training, and pay a renewal fee. The new Subfranchise Agreement signed for the successor term may have materially different terms and conditions, including changes to royalty fees and advertising obligations.
Training & Support Program
Franchisor Assistance
NativeWahl provides comprehensive support to its subfranchisees. Before a Wahlburgers Restaurant opens, NativeWahl offers advice on site acceptance, reviews proposed leases, and provides prototypical plans and specifications for the restaurant. They also furnish a list of approved suppliers for initial inventories and equipment and grant electronic access to the confidential operating manual. Additionally, NativeWahl provides an Initial Training Program (ITP) for up to four individuals and offers consultation on construction, building layout, equipment, employee selection and training, purchasing, and inventory control. After opening, NativeWahl and Wahlburgers Franchising LLC continue to administer the Brand Fund for advertising, implement system modifications, offer additional ongoing training, and provide periodic advice and consultation on operations, management, marketing, and other areas.
Initial Training Hours
85
Training Location
Wahlburgers Franchising LLC's corporate office in Hingham, Massachusetts, or a WF affiliate company-owned Wahlburgers Restaurant.
Ongoing Support
After a Wahlburgers Restaurant opens, NativeWahl and Wahlburgers Franchising LLC provide ongoing support. This includes administering the Brand Fund for advertising and marketing programs, implementing and requiring compliance with System modifications (such as changes to the menu or equipment), and offering additional training courses for managerial and experienced staff. NativeWahl also provides periodic advice and consultation on restaurant design, operations, management, menu development, sales, and customer service. Support may be delivered through visits by representatives, printed or electronic materials, online forums, meetings, seminars, and telephone communications. Additionally, franchisees must participate in customer satisfaction verification programs, including 800 numbers and secret shoppers, and comply with social media policies.
Franchise Requirements
Ideal Candidate Profile
NativeWahl LLC seeks Operating Principals for its Wahlburgers Restaurants who are accepted by NativeWahl, agree to personal covenants and indemnification, and reside within a reasonable driving distance of the restaurant. The Operating Principal must commit full-time and best efforts to supervising the development and operation of the Wahlburgers Restaurant. This individual must successfully complete the Initial Training Program, possess authority over all business decisions for the restaurant, and have the authority to legally bind the franchisee in dealings with NativeWahl and Wahlburgers Franchising LLC.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Wahlburgers and NativeWahl LLC generally provide franchisees with a protected territory that encompasses an area of approximately a 2-mile radius around the Wahlburgers Restaurant location. This protected area is subject to specific exceptions outlined in the FDD.
Staffing Notes
Wahlburgers Restaurants must always be personally supervised on-premises by an Operating Principal, general manager, or assistant manager who meets the applicable training qualifications. At all times the restaurant is open, at least one ServSafe-trained person must be on site. Franchisees are required to employ one general manager and at least three assistant managers, all of whom must meet NativeWahl's training requirements for their positions. The Operating Principal must dedicate full-time effort to supervising the restaurant's operations and must be accepted by NativeWahl. Franchisees are solely responsible for all employment decisions, including hiring, firing, compensation, and training of their staff, and must ensure employees comply with dress and appearance standards and meet all legal certification requirements.