Fatburger
Food & Beverage · Fast-Casual Restaurants
- Royalty
- 6.0%
of weekly Net Sales
About Fatburger
Fatburger is a legendary brand that has been serving up delicious burgers since 1952. Known as The Last Great Hamburger Stand™, Fatburger prides itself on using hand-pressed, never frozen beef patties that are simply unbeatable. But it's not just the burgers that make Fatburger special. Their menu features a wide variety of classic sandwiches, Buffalo's Express wings, sides, and more. From their scratch-made onion rings to their homemade chili, every item on the menu is made with care and attention to detail. And let's not forget about their mouthwatering milkshakes, made with hand-scooped ice cream and available in a range of flavors. Whether you choose their signature Medium (Original) burger or go for the XXL (Double Kingburger) for a real feast, Fatburger guarantees a satisfying and flavorful experience. So join the FAT Fam and indulge in the last great hamburger experience at Fatburger!.
Key terms
- Franchise fee
$50k
- Development fee credit
Portion of development fee credited against Initial Fee, typically $50,000 per Franchise Agreement.
- Brand fund
3.0% of Net Sales
- Local advertising
1.0% of Net Sales
- Multi-Unit Restaurant Agreement development fee
$50k
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD.
Growth
- Total locations—
Franchised units open at year-end
- New openings—
Gross new units opened during the calendar year
- 1-year unit growth rate—
Net unit growth versus prior year
- 3-year unit CAGR—
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio—
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$1.3M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open8 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate6.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.