Franchise Deep Dive: Smashburger's Franchise Costs, Fees, Profit and Data

With over 200 locations and support from a major multinational company, Smashburger is aiming to become the best “better burger” brand in North America.

By Jeff DwyerStaff Writer

Updated 10:10AM • 08/17/23

LAST UPDATED: August 7, 2023
FRANCHISE WEBSITE: https://www.smashburgerfranchising.com/
NUMBER OF LOCATIONS: 200+
REPORTED COST TO GET IN: $941,860 to $2,017,426
REPORTED ROI (Item 19): N/A

Smashburger is a fast-casual restaurant franchise that specializes in gourmet burgers. The brand is known for its specific approach to burger preparation, which involves “smashing” a ball of ground beef onto a hot grill, creating a thin patty.

Smashburger was founded in 2007 in Denver, Colorado by restaurant industry veterans Rick Schaden and Tom Ryan. The restaurant was then acquired by Jollibee Foods Corporation (JFC) in 2018. Following the purchase, Smashburger underwent a major brand refresh in 2019 that included a new logo, new décor and a new design. The brand says its goal is to be the “#1 fast-casual better burger brand in North America.”

As a result of its offerings, the franchise was named “America’s Most Promising Company” by Forbes in 2011 and ranked the ninth favorite burger restaurant brand in America by The Harris Poll’s annual EquiTrend Study.

How Many Smashburger Locations Are There?

As of August 2023, there are more than 200 Smashburger locations spanning 34 states, Washington D.C. and seven countries. The brand is actively offering new franchise opportunities in all 50 states but is specifically targeting the following markets:

California
Florida
Georgia
Illinois
Louisiana
Minnesota
Nevada
North Carolina
South Carolina
Texas

What Is Smashburger’s Business Model?

As a fast-casual restaurant franchise, Smashburger’s business model centers around providing customers with delicious gourmet burgers that are fully customizable. Guests are able to craft their favorite burgers with a wide selection of proteins, buns, toppings and sauces.

Additionally, the brand also features a comprehensive full-service bar complete with beer, cocktails and televisions. Smashburger says this is specifically designed to cater to diverse settings, including urban, suburban and unconventional locations. As such, Smashburger extends the opportunity for its franchise owners to operate in non-traditional venues like airports, college campuses, casinos and military installations.

Operated by the Jollibee Food Corporation, its franchise owners see benefits such as product stability, collective buying power and vendor access.

“Being part of the worldwide JFC family means we have the experience and reach to expertly navigate the ever-changing supply chain while keeping costs down and efficiencies high,” the brand wrote.

How Much Can Smashburger Franchise Owners Make?

Smashburger does not have a publicly available Item 19. However, the brand claims its locations earn an average gross profit margin of 36.8%. To learn more, contact the team about reading the Franchise Disclosure Document (FDD), which will state the total earnings of any company or franchise-owned unit as a reference.

How Much Does It Cost to Open a Smashburger?

The initial investment required to open a Smashburger franchise ranges between $941,860 to $2,017,426. Interested parties are also required to have a minimum of $250K in liquid assets and a net worth of $1.5 million.

What Is the Franchise Fee for Smashburger?

The initial franchise fee required to open a Smashburger franchise is $40K. Franchisees are also required to pay an ongoing royalty fee of 5.5% and a marketing fee of 2.5%.

Who’s On Smashburger’s Leadership Team?

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

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