About Little Big Burger Franchise
Little Big Burger is a fast casual restaurant franchise known for its cooked to order gourmet burgers served on brioche buns with local cheeses and signature truffle fries.
The streamlined menu also features veggie burgers, craft beers, and specialty sodas, all prepared in an open kitchen format that adds to the dining experience.
The franchise fee is $30,000, and Little Big Burger has been franchising since 2017 under LBB Acquisition, LLC and Amergent Hospitality Group, Inc.
Little Big Burger Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 5% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Brand Fund Contribution: 1.5% of Net Sales (can increase to 3%); Local Store Marketing Expenditures: at least 2% of quarterly Net Sales | National brand fund |
| Total Investment Range | $206,000 – $607,000 | Includes build-out, inventory, working capital |
The investment range of $206K–$607K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Net Sales) and marketing fee (Brand Fund Contribution: 1.5% of Net Sales (can increase to 3%); Local Store Marketing Expenditures: at least 2% of quarterly Net Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Lease and Security Deposits | $12,000 | $20,000 |
| Building and Zoning Permits | $10,000 | $30,000 |
| Leasehold Improvements | $75,000 | $250,000 |
| Signage | $5,000 | $40,000 |
| Initial Inventory | $5,000 | $12,000 |
| Insurance | $1,000 | $5,000 |
| Training Expenses | $5,000 | $20,000 |
| Grand Opening Marketing | $5,000 | $5,000 |
| Furnishings, Fixtures, Equipment and Supplies | $40,000 | $150,000 |
| Business Licenses and Professional Fees | $500 | $10,000 |
| Computer Equipment and Software | $5,000 | $15,000 |
| Additional Funds (3 Months) | $12,500 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500 (Franchise Agreement); $7,500 for each Little Big Burger restaurant that remains to be developed (Development Agreement) |
| Renewal Fee | $7,500 |
| Technology Fee | Currently, $75 per week |
| Audit Fee | Actual cost of audit, including travel, lodging, wages and reasonable accounting and legal costs; deficiency in Royalties and Brand Fund Contributions, plus interest |
| Cooperative Contributions | Anticipated to be a maximum of one-half of your local store marketing requirements |
| Collection Costs and Expenses | Amount incurred |
| Convention Registration | Up to $500 per attendee |
| Customer Complaints | Our reasonable costs and expenses |
| Early Termination Damages | Amount of the average weekly Royalty Fees and Brand Fund Contributions that you owed for the 52-week period prior to termination, multiplied by the lesser of 104 weeks or the number of weeks remaining in the term of the Franchise Agreement |
| Enforcement Expenses | Reasonable cost of our attorneys’ fees and expenses |
| Indemnification | Will vary under circumstances |
| Interest | 1.5% per month or the maximum rate permitted by applicable law, whichever is less. |
| Insufficient Funds Fee | $100 and any bank fees incurred (or the maximum amount permitted under applicable law, whichever is less) |
| Management Fee | 6% of Net Sales |
| Off-Premises Programs | Currently, $0 (fees and costs may be charged if established) |
| Securities Offering | $10,000 or such greater amount as is necessary to reimburse us and our outside advisors for our expenses |
| Quality Assurance Programs | Our out of pocket costs (typically $1,000 - $1,500) |
| Reimbursement of our Expenses | Amount we pay on your behalf |
| Supplier Evaluation | Reasonable costs of evaluation, which currently are expected to range between $1,000 and $1,500 |
| Taxes | Amount imposed on us |
| Training – Additional Programs | $500 per representative per day and travel expenses |
| Training - LMS Systems Fee | Up to $300 per month |
| Training – Replacement Personnel | $1,500 per person |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial training lasts up to 15 days |
| Classroom Training | 5 |
| On-the-Job Training | 96 |
| Training Location | Webinar/Call, Portland, OR |
| Additional Training | We may require you or your employees to attend and pass additional training programs at your expense. These additional training programs may include classroom training, web-based training and programs offered by third parties. We may require you to pay reasonable training fees for these programs (plus travel, meals and lodging expenses for our representatives, if we conduct the training at your Restaurant). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area |
| Exclusive Territory | No |
| Territory Size | Typically, the Protected Area will be set as a radius around the Franchised Location. |
| Description | The size of the Protected Area will vary depending on, among other things, the location in which you wish to operate the Restaurant. Typically, the Protected Area will be set as a radius around the Franchised Location. The perimeters of the Protected Area may be described by specific street boundaries, county lines, state lines, municipal boundaries, railroad tracks, or other similar boundary descriptions. Factors that we will use in order to determine the Protected Area include demographics, population density and number of households in the area, the growth profile of the populations within the area, the competitive environment in that market, and other factors that we will take into account. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | two 5-year terms |
| Renewal Fee | $7,500 |
| Renewal Conditions | Provide written notice of intent to renew; be in compliance with other agreements with us; demonstrate right to remain in possession of the Franchised Location; agree to renovate the Restaurant; meet our standards for new franchisees; sign renewal franchise agreement, sign general release (subject to state law) and pay $7,500 renewal franchise fee. The renewal franchise agreement may contain terms that are materially different from your expiring Franchise Agreement, such as different fee requirements, but will not include an initial franchise fee. |
| Transfer Fee | $7,500 |
| Transfer Conditions | Transferee qualified; accrued fees paid; no default exists; sales price reasonable; transferee signs new agreement; training arranged and transfer training fee paid; transferee agrees to upgrade and remodel the Restaurant; you sign release (subject to state law) and pay transfer fee. |
| Termination for Cause | We may terminate the Franchise Agreement and the Development Agreement only if you or your owners commit any one of several violations. |
| Non-Compete Period | two (2) years |
| Non-Compete Details | Subject to state law, no diverting customers to a Competing Business and no involvement in a “Competing Business” defined as restaurant business: (1) that has burgers as a primary menu item (i.e., sales of burgers comprise at least 20% of sales or that offers any individual menu item that comprises at least 20% of sales at Little Big Burger restaurants; or (2) whose method of operation or trade dress is similar to that employed in the System. During the term of this Agreement, there is no geographical limitation on this restriction. Following the expiration, transfer or termination of this Agreement, this restriction shall apply to any Competing Business located within the Development Area, within five (5) miles of the border of the Development Area, or within a five (5) mile radius of any then-existing Little Big Burger restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must designate one of your owners as your Managing Owner who will be the person with whom we communicate and who will have the authority to bind you with respect to all financial, operational and legal matters related to the Restaurant and the Franchise Agreement. The Managing Owner may also serve as your General Manager and/or your Multi-Unit Manager. You must designate a replacement within 30 days after your Managing Owner leaves his or her position. |
| Required Suppliers | You must purchase your food and beverage items, ingredients, supplies, equipment, furnishings, smallwares, merchandise, promotional items, information technology services, credit card processing services, and other products and services that you purchase for operation of or sale in the Restaurant in accordance with our specifications and quality standards and, if applicable, only from suppliers we have designated or approved (which may include us or our affiliates). |
| Supply Restrictions | If we require you to use an approved supplier for a particular item, but you wish to purchase the item from a supplier that we have not approved, you may submit a written request for approval of the supplier, unless it is an item for which we have designated a particular vendor as the source for the particular product or service. We have the right to inspect the proposed supplier’s facilities and to require delivery of product samples either to us or to an independent laboratory designated by us for testing. You may be required to pay a fee for evaluating the supplier. |
| Franchisor Revenue from Suppliers | We may earn money from the suppliers based on your purchases in the form of rebates, commissions, or other payments. In our last fiscal year, we and our affiliates did not receive any rebates or payments from approved suppliers on account of franchisee purchases or leases of required and approved items from those suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing to franchisees. We will not guarantee your promissory note, lease, or other obligation. |
Little Big Burger Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Little Big Burger 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.
Little Big Burger System Growth
Little Big Burger currently operates 0 franchised locations and 16 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 3 | 3 | 19 |
| 2020 | 0 | 4 | 15 |
| 2021 | 1 | 0 | 16 |
Transfers: 0 | Closures: 3
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Cherry Bekaert LLP for year ending December 31.
Little Big Burger Franchise — FAQ
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