About Krystal Restaurants Franchise
Krystal Restaurants is a classic Southern fast food franchise backed by CFTW Holdings II Corp that is known for its small, square, steam grilled sliders that have been a staple of Southern cuisine for decades.
The brand serves burgers, hot dogs, breakfast items, and late night favorites to a loyal customer base that spans multiple generations across the Southeastern United States.
With a franchise fee of $35,000, Krystal offers an accessible investment in a quick service restaurant brand with deep heritage and strong regional identity.
Krystal Restaurants Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently, your Marketing Obligation is: (a) 4.5% of your Gross Sales contribute | National brand fund |
| Total Investment Range | $58,500 – $202,500 | Includes build-out, inventory, working capital |
The investment range of $59K–$203K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (Currently, your Marketing Obligation is: (a) 4.5% of your Gross Sales contribute) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee(1) | $35,000 | $35,000 |
| Professional Fees and Closing Costs(2) | $6,000 | $10,000 |
| Site Development(3) | $300,000 | $500,000 |
| Building Construction(4) | $500,000 | $800,000 |
| Equipment(5) | $280,000 | $330,000 |
| Computers, Network and POS Systems(6) | $30,000 | $60,000 |
| Signage(7) | $50,000 | $140,000 |
| Insurance(8) | $9,000 | $15,000 |
| Architecture Fees and Permits | $55,000 | $80,000 |
| Onsite Assistance and Opening Support(9) | $10,000 | $10,000 |
| Opening Training Expenses(10) | $12,000 | $15,000 |
| Initial Inventory(11) | $12,000 | $18,000 |
| Grand Opening Advertising(12) | $7,500 | $15,000 |
| Miscellaneous Opening Costs(13) | $24,000 | $32,000 |
| Additional Funds – 3 Months(14) | $50,000 | $100,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT(15) | $1,380,500 | $2,160,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Renewal Fee | Payable if you qualify to renew your Franchise Agreement and choose to enter int |
| Technology Fee | $125 |
| Audit Fee | $564 |
| Marketing Obligation(3) | 4.5% of your monthly Gross Sales |
| Insurance | Reimbursement of our costs, plus a 20% administration surcharge |
| Catastrophe Fee | 5% of any insurance proceeds |
| Additional Training or Assistance Fees | $500 |
| Conference Fee | $500 |
| Supplier and Product Evaluation Fee | $100 |
| Gift Card Fees | You must participate in and subscribe to the “Krystal Gift Card Program” during |
| Customer Issue Resolution | $20 |
| Late Payment Fee | $100 |
| Non-Sufficient Funds Fee | $100 |
| Failure to Submit Required Report Fee | $100 |
| Management Fee | $200 |
| Securities Review | The greater of (a) a non- refundable fee equal to 50% of our then-current initia |
| Professional Fees and Closing Costs(2) | $6,000 |
| Site Development(3) | $300,000 |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Renewal Term | You may enter into up to two successor franchise agreements, each with a ten-year term, if you are in good standing and you meet other requirements describe in “c” below. We may require that you sign |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Does not offer financing. |
Krystal Restaurants Franchise Earnings — Item 19
Krystal Restaurants does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Krystal Restaurants Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Krystal Restaurants System Growth
Krystal Restaurants currently operates 127 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | ||
| 2020 | 0 | ||
| 2020 | 2 | ||
| 2020 | 1 | ||
| 2020 | 0 | ||
| 2020 | 0 | ||
| 2020 | 0 | ||
| 2020 | 1 | ||
| 2020 | 4 |
Krystal Restaurants Franchise — FAQ
Similar Food & Beverage Franchises
Interested in Krystal Restaurants?
Get free info on this franchise. We will send you a detailed FDD report by email.