SMASHBURGER

Item 7 in the 2025 FDD lays out a hefty $1,239,500 to $2,255,500 total investment per unit, covering real estate, buildout, equipment, and opening costs for that multi-unit focused model emphasizing defined territories. The $40,000 franchise fee gets you into a system with customizable smash burgers and shakes, but ongoing 5.5% royalties plus 2.2% brand fund (noted as 2.25% with $345-$377 monthly fixed fees for vendors like music and pest control) add up quick—figure 7.7% total ongoing plus extras. Without Item 19 disclosure, estimating returns is tough; you'd model based on fast-casual comps aiming for $1.5M+ AUVs, but volatile beef costs and competition from Shake Shack could squeeze margins.

System metrics paint a mixed picture: franchised locations fell 17% from 78 in 2023 to 65 in 2024, despite 129 corporate stores and just 4 projected new units, with 3 transfers signaling some owner shifts. SBA data shows 13 loans averaging $602,577 but a 15.4% default rate—higher than many peers—hinting at financing risks for these capital-intensive builds. Multi-unit developers might still eye Jollibee's resources for recovery, but solo operators face an uphill battle in a contracting network.