FATBURGER
Fatburger North America, Inc. is a franchisor of fast casual restaurants specializing in a limited menu of primarily hamburgers, turkeyburgers, and other classic American items under the 'Fatburger' and 'The Last Great Hamburger Stand' trademarks. Franchisees operate single or multiple restaurants following uniform recipes, distinctive decor, operating standards, and quality controls, with options for co-branding. The business targets the general public in urban and suburban settings with 800-2,500 square foot locations.
Franchise Costs
6% royalty + 3% ad fund + $70-125/mo technology fee
Financial Performance
Item 19 Financial Performance
Data Based On: 66 U.S. franchised restaurants (including both Fatburger only and co-branded operations) that were open for the full 2024 calendar year, as presented in the 'Selected Financial & Operating Data for All Fatburger Restaurants' tables.
* Average gross revenue and median gross revenue are directly from 'Table 1 - Net Sales' for 'All Fatburger Restaurants' (66 units) on page 2. Revenue top quartile is estimated as the average of the minimum and maximum values for the 'Over $1,500,000' range (15 units) from 'Table 2 - Range of Net Sales' on page 2: ($1,526,964 + $3,198,617) / 2 = $2,362,790.5. Revenue bottom quartile is estimated as the average of the minimum and maximum values for the 'Under $499,999' range (10 units) from 'Table 2 - Range of Net Sales' on page 2: ($305,445 + $499,807) / 2 = $402,626. The document explicitly states on page 6 that the provided financial information 'omits all operating costs and expenses related to operation of a restaurant except food, paper and store level labor,' which prevents the accurate calculation of net income, net profit, or EBITDA from the available data. Therefore, profit estimates are not provided.
Extracted Item 19 Section
How FATBURGER Compares
Key Insights
- Lower than average SBA loan default rate in Fast Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
FATBURGER Current | $517K – $2.7M | $50K | 6.0% | 177 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M – $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K – $728K | $35K | 6.0% | 2,647 |
| ARBY'S | $645K – $2.5M | $38K | 4.0% | 2,316 |
Fast Food Average 126 franchises | $594K – $1.5M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 126 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+1 more states
SBA Loan History
Historical SBA 7(a) loan data for FATBURGER franchisees (2010 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
94 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
94 Contacts Available
Unlock all FATBURGER franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Primarily disputes involving franchise agreement rescission due to registration issues, fraud in inducement, unlawful franchise sales, and breach of contract.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a FATBURGER franchise ranges from $517,300 to $2,656,900. This includes a franchise fee of $50,000. Ongoing royalty fees are 6.0% of gross sales.
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