Franchise Deep Dive: Fatburger Franchise Costs, Fees, Profit and Data

LAST UPDATED: January 2024

FRANCHISE WEBSITE: https://www.fatburgerfranchise.com/ 

NUMBER OF LOCATIONS: 200+

REPORTED COST TO GET IN: $508,600 to $1,694,900

REPORTED ROI (Item 19): $1,216,850 (average net sales) 

Fatburger is a quick service, fast casual hamburger franchise with an old-fashioned hamburger stand atmosphere. The brand has over 200 locations in 20 countries across the world and is seeking franchisees for continued growth. 

How Many Fatburger Locations Are There?

Fatburger was founded in 1947 by Lovie Yancey and her husband as a three bar-stool burger counter in Los Angeles and was originally called Mr. Fatburger. In 1952, when Yancey and her husband split up, she dropped the “Mr.” from the name and pursued her dream of making the world’s greatest hamburgers solo. Yancey chose the name Fatburger because she felt it perfectly described the thick, massive burgers with everything on them that the restaurant would serve. 

Now, Fatburger has 109 locations across the U.S. and nearly another 100 locations abroad. The brand is also a sister brand of the Atlanta based, fast-casual restaurant chain Buffalo's Cafe, with many franchisees taking advantage of the co-branded opportunity. 

What Is Fatburger’s Business Model?

Fatburger’s menu offers American burger-joint classics like burgers, fries and milkshakes. The Original burger contains a burger patty served on a sourdough bun, with “the works” (lettuce, tomato, onion, mayo, mustard, pickles and relish) and the option for customization. The brand’s partnership with Buffalo’s cafe is reflected through the menu options of boneless or bone-in chicken wings.

The franchise offers four types of venues to franchisees: traditional, full service, kiosk or co-branded.

The traditional model is typically between 1,500 and 2,300 square feet and includes inline, freestanding and end cap locations, with indoor seating for 40-50 consumers and additional seating often offered outdoors. Many traditional models include drive-thrus, bars and delivery service and serve breakfast, lunch, dinner and late night eats.

The full service model option is 2,500 to 4,500 square feet, includes free standing, inline and end cap locations and seats 100-150 consumers indoors, with 30-50 patio seats available. Full service models offer full table service for breakfast, lunch, dinner and late night eats.

Kiosk models are 800 to 1,000 square feet and are located in food courts or similar concepts.

Co-branded Fatburger and Buffalo’s locations are 800 to 2,300 square feet and serve both Fatburger and Buffalo’s Express menu items, with some co-branded locations offering drive-thru, bar and delivery services. 

How Much Can Fatburger Franchise Owners Make?

According to the brand’s 2023 Franchise Disclosure Document (FDD), the average net sales of a selection of 30 Fatburger restaurants (excluding co-branded locations) was $1,216,850. 

This includes free-standing, in-line, end-cap, casino and drive thru locations, as further detailed below. 

• The average net sales of eight free-standing locations was $1,270,597. 
• The average net sales of four in-line style locations was $730,740.
• The average net sales of seven end-cap locations was $1,112,456.
• The average net sales of 11 in-line and end-cap locations was $1,011,623.
• The average net sales of nine casino locations was $1,185,147.
• The total net sales of two drive thru locations was $1,802,355.

How Much Does It Cost To Open a Fatburger?

The total initial investment necessary to begin the operation of a Fatburger franchise ranges from $508,600 to $1,694,900. This includes a franchise fee of $50,000.

Franchise candidates must also have a minimum net worth of $1,500,000 and a minimum of $500,000 in liquid assets.

What Is the Franchise Fee for Fatburger?

Fatburger has a required franchise fee of $50,000. This fee must be paid to the franchisor. 

Who’s On Fatburger’s Leadership Team?

• Andy Wiederhorn - Chairman and Founder of FAT Brands
• Warren Christiansen - Deputy General Counsel and Senior Franchise Counsel
• Ray Malik - Chief Financial Officer

What Helpful Articles Can I Read to Learn More About Fatburger?

• 6 Fatburgers coming to Texas
• Franchise Forward: Growth Deals from Dave’s Hot Chicken, Fatburger
• Fatburger Makes Highly Anticipated Return to Tampa Area
• Fatburger Makes a Comeback to Orland Park with Star Studded Management Team
• Fatburger Joins the Celebration of 125th Anniversary of PEPSI® with Gargantuan 1.25 lb Fatburger Special and Sweepstakes

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