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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.
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Franchise Costs
6% royalty + 3% ad fund + $70-$396/mo technology system support
Financial Performance
Item 19 Financial Performance
Data Based On: 66 U.S. franchised Fatburger Restaurants (including co-branded with Buffalo's Café) open for the full 12 months of January 1, 2024 to December 31, 2024.
* The primary data set for 'All Fatburger Restaurants (Co-brand + Fatburger Only)' was used. Average gross revenue and median gross revenue are taken directly from Table 1 'Net Sales' Total row. Revenue quartiles are set to null as explicit average values for top/bottom quartile segments are not provided in the 'Range of Net Sales' table. Average gross profit is calculated as Average Gross Revenue * (1 - Average Food Cost Percentage). The best_guess_profit_low is estimated as Average Gross Revenue * (1 - Maximum Food Cost Percentage - Maximum Labor Cost Percentage). The best_guess_profit_high is estimated as Average Gross Revenue * (1 - Minimum Food Cost Percentage - Minimum Labor Cost Percentage). Food Cost and Labor Cost are the only expense categories provided. Other operating costs, taxes, interest, and depreciation are explicitly stated as omitted from the financial representation, therefore the calculated profit figures represent a partial operating profit and not net income, net profit, or EBITDA.
Extracted Item 19 Section
Avg. Revenue: $1,144,270
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Unlock financial performance dataFATBURGER Franchise Analysis
What draws burger lovers to Fatburger's 'Last Great Hamburger Stand'? This LA-born brand thrives on customizable, thick patties in urban spots, with co-branding options adding flexibility. Yet the 2025 FDD's Item 19 reveals revenue disparities across units, while system-wide shifts and SBA loan patterns hint at underlying challenges. Is Fatburger's high-volume promise enough to offset the risks?
Item 7 details a hefty initial investment of $517,300 to $2,656,900 for 800-2,500 sq ft locations, plus a $50,000 franchise fee. Ongoing fees include 6% royalty, 3% ad fund, and $70-$396 monthly tech support. Item 19 shines with average gross revenue of $1,144,270 and median $1,077,512, but estimated profits swing wildly from -$154,362 to $707,731, underscoring location and operations as make-or-break factors. SBA data reinforces viability with 25 loans averaging $458,304 and a low 8% default rate, suggesting financed units often succeed.
System health raises caution flags: locations dropped 10% from 98 in 2023 to 88 in 2024, with 11 terminations, 3 transfers, yet 11 projected new units. Litigation history involves franchise disputes like rescission claims (Tatum v. Fatburger) and fraud allegations, plus parent FAT Brands' bankruptcy filing. For buyers eyeing $1M+ sales potential, probe termination causes and verify co-branding performance—high rewards demand navigating contraction and legal hurdles.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
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% | 88 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| LITTLE CAESARS | $377K – $1.8M | $20K | 6.0% | 3,788 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| KFC (NON-TRADITIONAL) | $1.2M – $4.2M | $45K | N/A | 3,404 |
| SONIC DRIVE-IN | $1.5M – $2.5M | $15K | 5.0% | 3,120 |
Fast Food Average 132 franchises | $602K – $1.6M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 132 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
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Unlock location growth dataSBA 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.
25 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
94 franchisee contacts on file from official FDD filings.
94 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Primarily franchise agreement disputes involving rescission, fraud in inducement, breach of contract, and violations related to unregistered franchise sales (e.g., Tatum v. Fatburger on Virginia registration issues, Shahi v. Fatburger on multi-unit agreement, P&K v. Buffalo’s on franchise sale fraud).
Bankruptcy (Item 4)
Parent FAT Brands, Inc., Twin Hospitality Group Inc., and subsidiaries including Fatburger North America, Inc. filed voluntary Chapter 11 petitions on January 25, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently 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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