About Fatburger Franchise
Fatburger is an iconic fast casual hamburger franchise known as "The Last Great Hamburger Stand," operating under FAT Brands, Inc.
With a franchise fee of $50,000 and franchising since 1990, the brand has built a devoted following around its fresh, made to order burgers and distinctive restaurant atmosphere characterized by special recipes, unique decor, and an in store music system.
The Fatburger menu is primarily focused on premium hamburgers and related items, delivering a classic American burger experience that has earned a loyal fan base spanning decades.
Fatburger Franchise Cost & Fees
Minimum Investment
$509K
Average Investment
$1.3M
Maximum Investment
$2.0M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 6% of total net sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently 3% of total net sales | National brand fund |
| Total Investment Range | $509,300 – $1,996,900 | Includes build-out, inventory, working capital |
The investment range of $509K–$2.0M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of total net sales) and marketing fee (Currently 3% of total net sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee | $50,000 | $50,000 |
| Leasehold Improvements; Construction Costs | $150,000 | $900,000 |
| Equipment, Decor & Furnishings | $160,000 | $600,000 |
| Signage | $10,000 | $100,000 |
| Point of Sale Systems (POS) and related technology | $16,100 | $38,000 |
| Restaurant Small Wares | $11,500 | $19,000 |
| Initial Inventory | $7,200 | $10,400 |
| Security Deposits (Utilities, Insurance, etc.) | $9,000 | $32,500 |
| Insurance and Bonds | $8,000 | $12,000 |
| Rent | $3,500 | $20,000 |
| Miscellaneous (legal, accounting, licenses, permits) | $14,000 | $25,000 |
| Liquor Licenses and Fees | $5,000 | $75,000 |
| Grand Opening & Marketing Materials | $7,500 | $10,000 |
| Training | $32,500 | $65,000 |
| Additional Funds - three months | $25,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 |
| Renewal Fee | 40% of then-current initial fees |
| Technology Fee | Currently, $840-$1,500 per year for mandatory services plus up to $3,250 per year for optional services. |
| Audit Fee | Cost of audit plus interest on unpaid amount of 1.5% interest per month and $25 per week |
| Local Advertising | Currently 1% of total net sales |
| Additional Training | up to a maximum of $1,500 per week for each individual |
| Reimbursement for Rescheduled Training Expenses | additional travel expenses and wages |
| Reimbursement for pre-opening and post-opening assistance | travel expenses, per-diem charge (currently $100 per day per person), direct and indirect wages and other labor costs and expenses |
| Indemnification | Varies |
| Reimbursement of Cost of Insurance | Our cost to procure insurance and a reasonable fee to cover our related expenses |
| Unapproved Product/Supplier Fee | $500 per day |
| Damages, costs and expenses, including attorneys’ fees | Amounts we incur |
| Sales or similar taxes | Sales, gross receipts and similar taxes imposed on us because of payments you make |
| Securities/Partnership Interests in Franchisee Offering | $10,000 or our reasonable costs and expenses to review offering documents, whichever is greater |
| Management Fee | Varies; percentage of Net Sales is paid weekly, flat fees are paid monthly, the percentage of Net Income is paid quarterly, and fixed percentage of net consideration of a sale is paid upon the sale of the Restaurant |
| Plan and Design Review | Our costs and expenses to review, and have an architect acceptable to us, review the designs and plans for your Restaurant, not to exceed $3,000 |
| Lease Review Fee | Our costs and expense to review and accept your lease, not to exceed $2,500 |
| Fines | Then-current fines set forth in the Manuals |
| Cookie Equipment Lease | Estimated at $360 per year. If minimum purchase not met, $15 per case failed to purchase. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 to 6 weeks for managers, 1 week for executive |
| Classroom Training | 44 hrs. |
| On-the-Job Training | 256 hrs. |
| Training Location | Our corporate offices in Beverly Hills, CA, or certified training restaurants in Issaquah, Washington; Los Angeles, California; Fresno, California; and Beverly Hills, California. |
| Additional Training | We provide additional training for managers, operating partners, assistant managers, shift leaders, or other employees, and quarterly training and status meetings as deemed appropriate. Franchisees are reimbursed up to $500 per week for costs of training new managers/assistant managers/shift leaders. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Territory (for single unit) or Non-exclusive/Protected Rights (for multi-unit) |
| Exclusive Territory | No |
| Territory Size | typically within a one-mile radius of the Restaurant but may vary |
| Description | For single units, a 'Protected Territory' is described in the Franchise Agreement, typically a one-mile radius, varying by factors like population density and property types. For multi-unit agreements, a 'Development Area' is assigned, which can be 'Non-exclusive' or 'Protected Rights'. Even with 'Protected Rights', the franchisor reserves rights to operate or license other concepts, non-traditional venues, catering services, mobile units, and other brands within or outside the Development Area, regardless of proximity. No exclusive territory is granted. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | 2 ten-year renewals |
| Renewal Fee | 40% of then-current initial fees |
| Renewal Conditions | Must be in good standing, sign then-current franchise agreement, pay renewal fee, sign general release, give required notice, renovate premises, meet monetary obligations, have right to remain in premises or approved new location, and comply with current qualification and training requirements. |
| Transfer Fee | $15,000 |
| Transfer Conditions | Transferee must qualify and sign new agreement, pay transfer fee, sign release, upgrade Restaurant if necessary, pay all amounts due, not be in default, franchisor's rights to payment are subordinate, assignee meets qualifications, you and transferee sign guaranty, you remain liable for prior obligations, and transferee's operating partner/manager complete training. |
| Termination for Cause | Franchisor can terminate for material default (e.g., failure to pay monies due, failure to comply with agreement requirements, insolvency, bankruptcy, conviction of felony/moral turpitude, unapproved transfer, disclosure of confidential information, public health/safety threat, false books/records, lease default, training failure, repeated non-compliance). |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, no competitive business at any location within or outside the protected area. After termination/expiration, for 2 years, no competitive business within 5 miles of the former Restaurant or any other Fatburger restaurant operated under the Marks. No solicitation of customers or employees. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You do not have to personally supervise your Restaurant. However, if you do not, a manager or one of your assistant managers or shift leaders who has completed training must directly supervise the Restaurant on premises, spending at least 40 hours per week overseeing operations, food preparation, personnel supervision, and accounting. |
| Required Suppliers | Designated or approved real estate broker, designated construction company, contractor, architect, kitchen designer, interior designer, kitchen equipment supplier, small wares provider, furniture supplier, approved signage manufacturer, specified Information Systems, approved vendor for digital and static menu system, designated vendor for photographs and décor items, approved suppliers for furnishings, fixtures, decor, signage, equipment, computer hardware, software, uniforms, merchandise, flat screen television monitors, menu board system, in-store music system and sound system, inventory and other supplies, food products, ingredients, paper products and chemicals, designated or approved high speed internet connection, approved supplier for in-store music system, GFG Management for Cookie Equipment oven, GAC Supply for Cookie Ingredients. |
| Supply Restrictions | You must purchase or lease and maintain only specified brands, types, makes and/or models of Information Systems. You must purchase all or most parts of the digital and static menu system from one approved vendor. You must accept specified credit/debit cards and Fatburger loyalty/gift cards. You must purchase certain designated photographs and décor items from a designated vendor. You must purchase all furnishings, fixtures, decor, signage, equipment, etc. from a list of currently approved suppliers. You must subscribe to a designated or approved high-speed internet connection. You must participate in the designated in-store music system program and use music from an approved supplier. If offered, you must offer and sell cookies as a menu item, purchasing the Cookie Equipment oven from GFG Management and Cookie Ingredients from GAC Supply, and commit to selling cookies for a minimum four-year period. |
| Franchisor Revenue from Suppliers | During fiscal year 2023, FAT Brands received $0 from payroll services referral fees. Two beverage suppliers paid a rebate of $712,393 to Fat Brands based on franchisee purchases. Three product suppliers paid a rebate of $115,814.72 to Fat Brands based on purchases by subsidiary franchisors (BFCI, PFC, HAMT, EB, JRL, and FBNA). Fatburger and/or its affiliates derive revenue from Cookie Equipment leases ($1,440 total) and Cookie Ingredients sales ($15 per case if minimum purchase not met). |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. However, external financing sources have financed up to 70% of the cost of equipment, fixtures, and real estate for franchisees who meet their criteria. Franchisees or owners must contribute at least 25% of the cost as equity. We do not guarantee notes or obligations. |
Fatburger Franchise Earnings — Item 19
Average Revenue
$1.1M
Median Revenue
$892K
Revenue Range
$237K – $4.5M
Sample Size
74 units
Past financial performance does not guarantee future results. Individual results will vary.
Fatburger Litigation & Risk Flags
3 Pending Actions ListedReview the full FDD for details on pending litigation.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Fatburger System Growth
Total Units
189
Franchised
189
Company-Owned
0
Fatburger currently operates 189 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 20 | 10 | 193 |
| 2022 | 25 | 16 | 202 |
| 2023 | 13 | 21 | 194 |
Transfers: 5 | Closures: 21
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$10.6M
Net Income
$-666,394
Total Assets
$20.4M
Audited by Macias Gini & O'Connell, LLP for year ending December 31, 2023.
Fatburger Franchise — FAQ
The total investment to open a Fatburger franchise ranges from $509,300 to $1,996,900, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Fatburger charges a royalty fee of 6% of total net sales of gross sales, plus a Currently 3% of total net sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Fatburger Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Fatburger to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Fatburger franchise owners report average revenue of $1.1M and median revenue of $892K. This is based on a sample of 74 units. Past performance does not guarantee future results.
Fatburger has been franchising since 1990. The FDD shows an investment range of $509,300-$1,996,900, a 6% of total net sales royalty, and includes an Item 19 earnings disclosure. There are 3 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $50,000 and the total investment ranges from $509,300 to $1,996,900 depending on location size and market. A minimum of $127,325 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Fatburger and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Fatburger or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com