FATBURGER

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.

177
Locations
$517K–$2657K
Investment
Food & BeverageBeverly Hills, CAFAT Brands, Inc.www.fatburger.comDisclaimer

Franchise Costs


Franchise Fee
$50,000
Item 5 of FDD
Initial Investment Range
$517,300 $2,656,900
Low: $517,300High: $2,656,900
Item 7 of FDD
Royalty Rate
6.00%
of gross sales
Brand Fund
3.00%
Item 6 of FDD
Fixed Monthly Fees
$70 – $125
Item 6 of FDD

6% royalty + 3% ad fund + $70-125/mo technology fee

Financial Performance


Item 19 Financial Performance

Average Gross Revenue
$0
Median Gross Revenue
$0
Top Quartile Revenue
$0
Bottom Quartile Revenue
$0

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
FranchiseInvestmentFeeRoyaltyLocations
FATBURGER
Current
$517K – $2.7M$50K6.0%177
MCDONALD'S$1.5M – $2.6M$45KN/A12,772
AFC$45K – $151K$6K9.5%3,572
SONIC DRIVE-IN$1.7M – $3.1M$15K5.0%3,441
JIMMY JOHN'S$366K – $728K$35K6.0%2,647
ARBY'S$645K – $2.5M$38K4.0%2,316
Fast Food Average
126 franchises
$594K – $1.5M$35K6.1%

* 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

Top States
1CA
46
2TX
9
3NV
9
4WA
7
5AZ
4
6PA
3
7FL
2
8IL
2
9NM
2
10LA
1
11CO
1
12AK
1
13NJ
1
14KS
0
15VA
0

+1 more states

SBA Loan History


Historical SBA 7(a) loan data for FATBURGER franchisees (20102025)

Total Loans
25
Average Loan
$458,304
Total Volume
$11.5M
Default Rate
8.0%

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.

NameSBA 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)

Franchisee Cases3

Primarily disputes involving franchise agreement rescission due to registration issues, fraud in inducement, unlawful franchise sales, and breach of contract.

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired
0
Ceased Ops
28
Transfers
3
Sold to Franchisees
0
Projected New
23

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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