Smashburger Franchise FDD, Profits & Costs (2025)
Smashburger, a prominent force in the fast-casual restaurant scene, is celebrated for transforming the way people enjoy burgers. Founded in Denver in the summer of 2007, the company quickly made its mark by serving premium, made-to-order smashed burgers that appeal to the refined palates of burger enthusiasts.
Its signature method involves using top-tier Angus beef and a special smashing process, which guarantees that each burger is bursting with taste and tenderness, distinguishing Smashburger from traditional fast-food options.
With its main office in Denver, Colorado, Smashburger began franchising in 2008, a mere year following its establishment. This deliberate expansion strategy was designed to broaden its footprint and bring its distinctive burger experience to more people.
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Initial Investment
How much does it cost to start a Smashburger franchise? It costs on average between $1,332,000 – $2,354,000 to start a Smashburger franchised restaurant.
This includes expenses for construction, equipment, inventory, and initial operating costs. The exact investment varies based on factors such as the restaurant format, the location, and whether the franchisee opts to lease or buy the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Fees | $40,000 |
| Leasehold Improvements | $900,000 to $1,382,610 |
| Furniture, Fixtures and Equipment | $269,000 to $371,413 |
| Signage | $9,000 to $41,756 |
| IT, POS System | $27,000 to $51,126 |
| Three Month’s Rent | $26,000 to $53,581 |
| Security Deposit, Business Licenses | $1,560 to $11,000 |
| Opening Inventory and Supplies | $15,000 to $20,000 |
| Grand Opening Advertising | $10,000 |
| Training Expenses | $6,000 to $274,780 |
| Grand Opening Assistance | $0 to $30,000 |
| Miscellaneous Opening Costs | $1,000 to $5,000 |
| Professional Fees | $5,000 to $15,000 |
| Insurance Premiums – 3 Months | $10,000 to $20,000 |
| Liquor Licensing | $1,000 to $6,618 |
| Lease Review Fee | $1,500 |
| Additional Funds – 3 months | $10,000 to $20,000 |
| Total | $1,332,060 to $2,354,384 |
Average Revenue (AUV)
How much revenue can you make with a Smashburger franchise? A Smashburger franchised restaurant makes on average $1,069,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,527,000 yearly revenue for similar burger franchises. Below are a few Smashburger competitors as a comparison:
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Smashburger Franchise Disclosure Document
Frequently Asked Questions
How many Smashburger locations are there?
As of the latest data, Smashburger operates a total of 219 locations. This includes 134 company-owned units and 85 franchised units, showcasing a balanced mix of corporate and franchise-operated restaurants.
What is the total investment required to open a Smashburger franchise?
The total investment required to open a Smashburger Franchise franchise ranges from $1,332,000 to $2,354,000.
What are the ongoing fees for a Smashburger franchise?
As a Smashburger franchisee, you are required to pay a royalty fee is 5.5% of your gross sales, payable weekly. Additionally, there is a marketing contribution currently set at 2.25% of gross sales, which may increase to a maximum of 4% as determined by the franchisor.
What are the financial requirements to become a Smashburger franchisee?
To qualify as a Smashburger franchisee, you must have a minimum net worth of $2 million and at least $500,000 in liquid assets. These financial prerequisites ensure that potential franchisees possess the necessary resources to support the establishment and operation of a Smashburger restaurant.
How much can a Smashburger franchise owner expect to earn?
The average gross sales for a Smashburger franchise are approximately $1.07 million per location. Assuming a 15% operating profit margin, $1.07 million yearly revenue can result in $161,000 EBITDA annually.
Who owns Smashburger?
Smashburger franchise is owned by Jollibee Foods Corporation, a global food and restaurant company based in the Philippines. Jollibee acquired full ownership of Smashburger in 2018, further expanding its international presence in the fast-casual dining sector.
Disclaimer
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