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Nathan's Famous Inc.

2015 Franchise 500
#151
At a Glance

Products & Services: Hot dogs, hamburgers, seafood, chicken, cheesesteaks

Number of Locations: 320

Total Investment: $276.4K - $1.1M

Founded: 1916

Began Franchising: 1988

About Nathan's Famous Inc.

Polish immigrant Nathan Handwerker took his wife Ida's recipe for hot dogs and started selling them from a stand in Coney Island in 1916. The Nathan's Famous hot dog eating contest that started that same year continues to be held every July 4th to this day. Al Capone, Jimmy Durante and Cary Grant were regular customers, and FDR had Nathan's Famous hot dogs served to the king and queen of England in 1939. Nathan's Famous became a public company in 1970, and began franchising in 1988. In addition to hot dogs, the menu offers hamburgers, chicken, cheesesteaks and fries.

Franchise Units

Year U.S. Canadian International Company Owned
2014 284 2 29 5
2013 281 4 29 5
2012 266 2 28 5
2011 243 1 23 5
2010 231 0 17 5
Where Seeking Franchisees: Franchisor is seeking new units internationally.
Direct Capital

Startup Costs, Ongoing Fees and Financing

Total Investment: $276,360 - $1,071,360
Franchise Fee: $30,000
Ongoing Royalty Fee: 5.5%
Term of Franchise Agreement: 20 years, renewable
Financial Requirements
Net Worth: $500,000
Liquid Cash Available: $200,000
Operations
60% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 14. Absentee ownership of franchise is allowed. (65% of current franchisees are owner/operators).
Direct Capital
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: At franchisee's location: 5-10 days. At corporate training location : 3 weeks.
Ongoing Support: Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations
Marketing Support: Co-op advertising,

Franchise Ranking History

Franchise 500®: #151 (2015), #144 (2014), #130 (2013), #143 (2012), #128 (2011), #173 (2010),
Fastest-Growing: #96 (2013),
America's Top Global: #122 (2014), #98 (2013), #116 (2012), #107 (2011), #136 (2010),