Fatburger Franchise FDD, Profits & Costs (2025)
Fatburger, established in 1947 by Lovie Yancey in Los Angeles, California, is a renowned American fast-casual restaurant chain celebrated for its made-to-order, freshly prepared burgers. Originally named “Mr. Fatburger,” Yancey rebranded it to “Fatburger” in 1952 after parting ways with her business partner, dedicating herself to creating a unique dining experience that attracted a diverse clientele, including celebrities.
The brand’s headquarters are located in Beverly Hills, California. Fatburger began franchising in 1985, expanding its footprint both domestically and internationally. Fatburger’s menu centers around customizable burgers made from 100% pure lean beef, offering various sizes and toppings to cater to individual preferences.
In 2018, they distinguished themselves by being the first national fast-casual chain to introduce the plant-based Impossible Burger across all U.S. locations, appealing to health-conscious and environmentally aware consumers.
Additionally, select Fatburger locations feature co-branded offerings with Buffalo’s Cafe, providing authentic buffalo-style wings, and Hot Dog on a Stick, expanding their menu diversity.
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Initial Investment
How much does it cost to start a Fatburger franchise? It costs on average between $509,000 – $1,695,000 to start a Fatburger franchised restaurant.
This includes expenses for construction, equipment, inventory, and initial operating costs. The total investment varies based on several factors, such as the restaurant’s size and format, its location, and whether the franchisee opts to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Fee | $50,000 – $50,000 |
| Leasehold Improvements; Construction Costs | $150,000 – $600,000 |
| Equipment, Decor & Furnishings | $160,000 – $600,000 |
| Signage | $10,000 – $100,000 |
| Point of Sale Systems (POS) and related tech | $16,100 – $38,000 |
| Restaurant Small Wares | $10,800 – $17,000 |
| Initial Inventory | $7,200 – $10,400 |
| Security Deposits (Utilities, Insurance, etc.) | $9,000 – $32,500 |
| Insurance and Bonds | $8,000 – $12,000 |
| Rent | $3,500 – $20,000 |
| Miscellaneous (legal, accounting, licenses) | $14,000 – $25,000 |
| Liquor Licenses and Fees | $5,000 – $75,000 |
| Grand Opening & Marketing Materials | $7,500 – $10,000 |
| Training | $32,500 – $65,000 |
| Additional Funds – three months | $25,000 – $40,000 |
| Total | $508,600 – $1,694,900 |
Average Revenue (AUV)
How much revenue can you make with a Fatburger franchise? A Fatburger franchised restaurant makes on average $1,080,000 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 Fatburger competitors as a comparison:
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Fatburger Franchise Disclosure Document
Frequently Asked Questions
How many Fatburger locations are there?
As of the latest data, Fatburger operates a total of 193 locations, all of which are franchise-owned. The company does not have any company-owned units, making it a fully franchised brand.
What is the total investment required to open a Fatburger franchise?
The total investment required to open a Fatburger franchise ranges from $509,000 to $1,695,000.
What are the ongoing fees for a Fatburger franchise?
Fatburger franchisees are required to pay an ongoing royalty fee of 6% of their net sales. In addition, they contribute 4% of their net sales towards national and local advertising efforts.
What are the financial requirements to become a Fatburger franchisee?
To qualify as a Fatburger franchisee, applicants must have a minimum net worth of $1.5 million, with at least $500,000 in liquid assets.
How much can a Fatburger franchise owner expect to earn?
The average gross sales for a Fatburger franchise are approximately $1.08 million per location. Assuming a 15% operating profit margin, $1.08 million yearly revenue can result in $162,000 EBITDA annually.
Who owns Fatburger?
Fatburger is owned by FAT Brands Inc., a multi-brand restaurant operator based in Beverly Hills, California. FAT Brands owns several restaurant chains, including Johnny Rockets, Marble Slab Creamery, and Twin Peaks
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