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Franchise 500 2023
Franchise 500 Rank
N/R Not ranked last year
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Initial investment
$509K - $1.7M
Units as of 2023
205 Increase 27.3% over 3 years

Fatburger is a privately owned and operated chain of hamburger restaurants. The company is committed to serving fresh and delicious beef burgers grilled to order, alongside chicken sandwiches, turkey burgers, veggie burgers, Impossible Burgers, chili dogs, fries, onion rings, and milkshakes. Even before founding this company—originally called Mr. Fatburger—Lovie Yancey was well known for crafting hamburgers. She started the company out of a dream to create thick and juicy hamburgers that would be recognized as the best in the world.

The company has now been in operation for over 60 years, but still holds a reputation for serving delicious hamburgers with excellent customer service. The brand has expanded to almost 100 franchise locations in the U.S., and has a strong international presence as well. Fatburger has grown to become a recognized brand in the fast food industry.

Why Might You Want to Start a Fatburger Franchise?

The reputation of this restaurant chain is heavily dependent on word of mouth for marketing. The company strives to leave its customers full and happy in order to grow a cult-like following. As a Fatburger franchisee, you may also have the opportunity to co-brand with the company’s sister brand, Buffalo's Café, which serves chicken wings.

Another significant upside to owning a Fatburger franchise is that there are several venue designs to choose from. You can purchase a co-branded joint, a food court kiosk, a drive-thru restaurant with a seating capacity of 50 people, or a dine-in restaurant that can hold up to 150 customers. Franchisees have the freedom to choose whether to offer bar service and/or delivery.

What Might Make a Fatburger Franchise a Good Choice?

Like other franchises for sale, profitability will depend on the quality of operational standards, location, management, competition level, and owner involvement. The demand for hamburgers is consistent, with over 50 billion hamburgers consumed in America every year.

To become a franchisee, you will need to meet the Fatburger franchise net worth and liquidity requirements and pay a franchise fee. Additional fees may apply, such as royalty and advertising fees, usually paid as a percentage of gross sales. 

Franchisees benefit from an extensive training program and strong support from the Fatburger franchise. This support plays a huge role in possible franchise success. Support may be given in the brand's supply chain of goods, building construction, and hiring teams, to name a few. 

How Do You Start a Fatburger Franchise?

The company may offer a speedy startup process dependent upon the site selection process and training. Fatburger company representatives may be available to assist in your grand opening as well. 

An ideal franchisee is someone who is upbeat, business savvy, and loves a big juicy hamburger. As you make your decision to purchase a Fatburger franchise, make sure you take time to explore the opportunity. Research the brand and your local area to see if a franchise would do well in your community. While competition is healthy, too much of it will not allow for a large amount of growth.

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Company Overview

About Fatburger

Industry Food
Related Categories Hamburgers
Founded 1952
Parent Company FAT Brands Inc.
Leadership Taylor Wiederhorn, Chief Development Officer
Corporate Address 9720 Wilshire Blvd., #500
Beverly Hills, CA 90212
Social Facebook, Twitter, Instagram

Business Overview

Franchising Since 1990 (34 years)
# of employees at HQ 315
Where seeking

This company is offering new franchises throughout the US.

This company is offering new franchises worldwide.

# of Units 205 (as of 2023)

Information for Franchisees

Here's what you need to know if you're interested in opening a Fatburger franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Information Circle
$50,000
Initial Investment Information Circle
$508,600 - $1,694,900
Net Worth Requirement Information Circle
$1,500,000
Cash Requirement Information Circle
$500,000
Royalty Fee Information Circle
6%
Ad Royalty Fee Information Circle
4%
Term of Agreement Information Circle
15 years
Is franchise term renewable? Yes
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Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing Fatburger has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training 256 hours
Classroom Training 44 hours
Ongoing Support
Purchasing Co-ops
Meetings & Conventions
Grand Opening
Online Support
Security & Safety Procedures
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform
Marketing Support
Ad Templates
National Media
Regional Advertising
Social Media
Website Development
Email Marketing
Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed? No
Can this franchise be run from home/mobile unit? Information Circle
No
Can this franchise be run part time? Information Circle
No
# of employees required to run 15-25
Are exclusive territories available? Information Circle
Yes
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Franchise 500 Ranking History

Compare where Fatburger landed on this year's Franchise 500 Ranking versus previous years.

Additional Rankings

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. Our listings and rankings are solely research tools you can use to compare opportunities. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. That should include reviewing the company's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers.
Updated: December 12th, 2022