About Nathan's Famous Franchise
Nathan's Famous is a legendary American food brand best known for its hot dogs made with a signature spice recipe, along with crinkle cut french fries, hamburgers, and other fast service menu items.
A subsidiary of Nathan's Famous, Inc., the company has been franchising its Branded Menu Program since 2006, allowing existing food service businesses to add Nathan's Famous products to their menus.
The franchise fee for the Branded Menu Program is $7,500, making it a low cost way for existing food service operators to leverage one of the most recognizable names in American fast food.
Nathan's Famous Franchise Cost & Fees
Minimum Investment
$50K
Average Investment
$115K
Maximum Investment
$179K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $7,500 | One-time payment upon signing |
| Royalty Fee | N/A (revenue from product sales) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | N/A (no mandatory marketing development fund contributions) | National brand fund |
| Total Investment Range | $50,360 – $178,800 | Includes build-out, inventory, working capital |
The investment range of $50K–$179K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (N/A (revenue from product sales)) and marketing fee (N/A (no mandatory marketing development fund contributions)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Note 1) | $7,500 | $7,500 |
| Restaurant Construction (Note 2) | $0 | $45,000 |
| Additional Furnishings, Fixtures and Equipment (Note 3) | $27,360 | $90,000 |
| Signs, Menu Boards and Graphics (Note 4) | $3,500 | $11,300 |
| Branded Menu Program Initial Inventory (Note 5) | $2,000 | $5,000 |
| Additional Funds (Note 6) (for first three months) | $10,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of $1,125 or 15% of our then-current initial license fee. |
| Renewal Fee | $3,750 |
| Product Purchases for Nathan’s BMP Operation | Varies (we make a profit on these sales) |
| Interest on Overdue Payments | 1.5% per month or maximum rate permitted by law, whichever is less |
| Costs and Attorneys' Fees | Will vary under circumstances |
| Cost of Defense | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | No initial or ongoing training provided. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | You will not receive an exclusive territory. You may face competition from other franchisees, company-owned outlets, or other channels of distribution/competitive brands controlled by us. We may establish franchised or company-owned outlets of any kind anywhere, including other BMP Operations and “Nathan’s Famous” Restaurants. We may also grant licenses for remote kitchens in close proximity to your Restaurant. We or our designees may sell Grocery Products, Bulk Products, and Branded Products for resale anywhere and through all direct-to-consumer channels. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Five years |
| Renewal Term | One additional term of five years |
| Renewal Fee | $3,750 |
| Renewal Conditions | Operator has no contractual right to extend the term. If parties mutually agree to extend, Operator must pay a fee of $3,750 in addition to other non-renewal fees. |
| Transfer Fee | The greater of $1,125 or 15% of our then-current initial license fee. |
| Transfer Conditions | NFSI's prior written consent is required for any transfer of rights or obligations under the Agreement or any direct/indirect interest in Operator. If approved, a transfer fee (greater of $1,125 or 15% of the then-applicable initial fee for new BMP Operators) and all sums owed to NFSI/distributors must be paid. |
| Termination for Cause | Default under Branded Menu Program License Agreement, ceasing to operate or abandoning the Franchised Business, conviction of felony, failure to pay monies, threat to public safety, unauthorized transfer, unauthorized use of trademarks, insolvency, bankruptcy, unsatisfied judgments, dissolution, or repeated defaults. |
| Non-Compete Period | Not Applicable |
| Non-Compete Details | Not Applicable |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The License Agreement does not require you to participate personally in the direct operation of the BMP Operation, although active participation is encouraged and recommended. No restrictions are imposed on your managers. |
| Required Suppliers | You must buy all food products, equipment, ingredients, and other supplies for the BMP Operation only from us or from a distributor we have authorized. |
| Supply Restrictions | Hot dogs must be purchased from designated suppliers (Smithfield Foods, Inc. and Marathon Enterprises, Inc.) to maintain proprietary spice formula, quality, and uniformity. No other hot dogs may be offered or sold. |
| Franchisor Revenue from Suppliers | We derive income directly and indirectly from sales of products to you and from rebates, license fees, payments, and other compensation from vendors, distributors, manufacturers, and other third parties based on your purchases. Total rebates received by our marketing development fund and us are estimated to be approximately 4.0% to 6.5% of purchases by both company-owned and franchised Restaurants in the System. For fiscal year ended March 31, 2024, NFSI received $646,467 (approx. 0.5% of total revenues) in rebates from franchisee/licensee purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither we nor any agent or affiliate offers direct or indirect financing to you, guarantees any note, lease or obligation of yours, or have any practice or intent to sell, assign, or discount to a third party all or part of any financing arrangement of yours. |
Nathan's Famous Franchise Earnings — Item 19
Nathan's Famous does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Nathan's Famous 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.
Nathan's Famous Litigation & Risk Flags
Clean Litigation RecordNathan's Famous has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Nathan's Famous System Growth
Total Units
90
Franchised
90
Company-Owned
0
Nathan's Famous currently operates 90 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 |
|---|---|---|---|
| 2022 | 1 | 9 | 87 |
| 2023 | 3 | 4 | 86 |
| 2024 | 2 | 7 | 81 |
Transfers: 27 | Closures: 20
State Registrations
Registered in 14 states: CA, IL, IN, MI, NY, HI, MD, MN, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$126.9M
Net Income
$29.2M
Total Assets
$42.7M
Audited by Marcum LLP for year ending Last Sunday in March.
Nathan's Famous Franchise — FAQ
The total investment to open a Nathan's Famous franchise ranges from $50,360 to $178,800, per their Franchise Disclosure Document. This includes the initial franchise fee of $7,500. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Nathan's Famous charges a royalty fee of N/A (revenue from product sales) of gross sales, plus a N/A (no mandatory marketing development fund contributions) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Nathan's Famous 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 Nathan's Famous to ensure you have the most up-to-date version.
Nathan's Famous does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Nathan's Famous has been franchising since 2006. The FDD shows an investment range of $50,360-$178,800, a N/A (revenue from product sales) royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $7,500 and the total investment ranges from $50,360 to $178,800 depending on location size and market. 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 Nathan's Famous and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Nathan's Famous or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com