Start a Fatburger Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $509K - $1.7M

Units as of 2023: 205 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.

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 Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$50,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$508,600 - $1,694,900
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$1,500,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$500,000
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	6%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	4%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	15 years
Is franchise term renewable?	Yes

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? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	15-25
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes