About Nathan's Famous Franchise
Nathan's Famous offers its Branded Menu Program, a franchise model that allows existing food service establishments to add Nathan's Famous hot dogs, crinkle cut french fries, and other signature menu items to their operations.
Operating under Nathan's Famous Operating Corp., this program has been available since 2006 and provides a cost effective way for food businesses to incorporate a nationally recognized brand into their existing setup.
The franchise fee for the Branded Menu Program is $7,500.
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 | 0% of sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 0% of sales | 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 (0% of sales) and marketing fee (0% of sales) 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 |
| 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 | Not provided |
| Additional Training | We will not provide any initial or ongoing training to BMP Operations. |
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, from outlets that we own, or from other channels of distribution or competitive brands that we control. We may establish franchised or company-owned outlets of any kind anywhere (including other BMP Operations and “Nathan’s Famous” Restaurants). In addition, we may grant qualified operators a license to operate remote kitchens which may be located in close proximity to your Restaurant. |
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 | Should the parties mutually determine to extend the term, NFSI shall require Operator to pay a fee equal to Three Thousand Seven Hundred Fifty Dollars ($3,750) (in addition to other requirements other than paying a renewal fee). |
| Transfer Fee | The greater of $1,125 or 15% of our then-current initial license fee |
| Transfer Conditions | If NFSI approves any such Transfer, then among other conditions to its approval and the effectiveness of said Transfer, Operator shall pay NFSI a transfer fee of One Thousand One Hundred Twenty Five Dollars ($1,125), or fifteen percent (15%) of the then-applicable initial fee being charged to new Branded Menu Program Operators, whichever is greater, as well as any and all sums then owed to NFSI and/or its distributors. |
| 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 and others. |
| Non-Compete Period | Not Applicable |
| Non-Compete Details | The Item 17 table indicates 'Not Applicable' for non-competition covenants during and after the term of the franchise. |
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 we encourage and recommend active participation by you. We do not impose any restrictions on your managers. |
| Required Suppliers | You must buy all food products, equipment, ingredients, and other supplies to be used in preparation of products from the BMP Operation only from us or from a distributor that we have authorized to sell those materials to you. |
| Supply Restrictions | You must purchase hot dogs only from our designated supplier(s) and must not offer or sell any other hot dogs at or from the BMP Operation. You must serve all items on our standard menu and obtain written approval for any new or additional menu items. |
| Franchisor Revenue from Suppliers | NFSI received $522,441 (approximately 0.4% of total revenues) from rebates on franchisee/licensee purchases. NF Treachers received $25,173 (approximately 27.4% of total revenues) from rebates on franchisee purchases. NFOC received $12,654 (approximately 0.01% of total consolidated revenues) from rebates on company-owned restaurant 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
86
Franchised
86
Company-Owned
0
Nathan's Famous currently operates 86 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 | 1 | 2 | 95 |
| 2022 | 1 | 9 | 87 |
| 2023 | 3 | 4 | 86 |
Transfers: 29 | Closures: 15
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
$119.1M
Net Income
$29.6M
Total Assets
$44.6M
Audited by MARCUM LLP for year ending last Sunday in March each year.
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 0% of sales of gross sales, plus a 0% of sales 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 0% of 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. A minimum of $10,000 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 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