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Fatburger

Information based on 2023 FDD
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Brand Highlights
  • Founded in 1952
  • Franchising Since 1990
  • 193 US Franchises
  • $508,600 - $1,694,900 Investment Range
  • $1,216,850 Average Gross Revenue
  • 6% Royalty Fee
  • $50,000 Franchise Fee
Pre-qualification Amount

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Brand Description

Fatburger, founded in 1952, has earned its reputation as 'The Last Great Hamburger Stand' by delivering an authentic, premium burger experience that stands apart from typical fast-food offerings. This iconic brand combines the nostalgia of a classic American burger joint with modern restaurant operations and consistently high-quality food.

What sets Fatburger apart is their commitment to made-to-order, fresh burgers that can be customized to any appetite – from their signature 'Fat' burger to the massive XXXL challenge burger. Each patty is grilled to perfection, featuring a distinctive crispy crust while maintaining a juicy interior. The menu goes beyond just burgers, offering hand-scooped real ice cream milkshakes, crispy 'Fat Fries,' onion rings, and even plant-based options with their Impossible Burger selection.

The restaurant atmosphere captures the essence of a 1950s diner, complete with oldies music and a welcoming vibe. Fatburger has cultivated a loyal following by maintaining high standards of food quality while creating an engaging dining experience. Their locations are known for friendly service, clean environments, and a commitment to customer satisfaction.

From their humble beginnings in Los Angeles to their current status as an international brand, Fatburger has maintained its core values of serving fresh, high-quality burgers in a welcoming atmosphere. The franchise continues to expand while staying true to its original mission of providing 'the best burger you've ever tasted.'

DID YOU KNOW?

How much does it cost to start a franchise with Fatburger?

$508,600
$1,694,900
Did you know that opening your own Fatburger franchise - the legendary California burger chain famous for their "build your own" custom burgers and fresh-never-frozen beef - requires a total investment ranging from $508,600 to $1,694,900, which includes the $50,000 franchise fee plus all the startup costs needed to bring those iconic flame-grilled burgers to your community?
Financial Summary
Franchise Fee
$50,000
Investment Range
$508,600 - $1,694,900
Investment Midpoint
$1,101,750
Minimum Cash Required
$508,600
Royalty Fees
6%
Brand Fund
3%
Brand Bragging Rights
70+ years proven operating history
Iconic West Coast burger heritage
Build-your-own burger customization focus
Established brand recognition and loyalty
Streamlined quick-service operations model
Competitive investment entry point
Financial Analysis
Fatburger requires an investment range of $508,600 to $1,694,900, positioning it as a mid-tier opportunity within the burger franchise sector. This range falls below the sub-sector averages of $985,322 to $2,087,083, making it relatively accessible compared to premium burger concepts. The lower entry point may appeal to first-time franchisees or those seeking established brand recognition without premium investment requirements.

The burger segment remains highly competitive yet resilient, driven by consistent consumer demand for quick-service dining. However, market saturation in many areas requires careful site selection and differentiation strategies. Fatburger's 70+ year operating history since 1952 demonstrates proven system longevity, though its 193 units suggests more selective growth compared to larger burger chains.

The reported gross revenue of $1,216,850 aligns closely with sub-sector averages of $1,259,214, indicating competitive performance within the burger category. This mature franchise system offers established operational procedures and brand recognition, particularly beneficial for investors seeking proven business models.

Ideal candidates should possess $200,000-400,000 in liquid capital and restaurant management experience or willingness to be hands-on operators. The burger segment's operational complexity requires strong local marketing and quality control focus. Multi-unit development opportunities may exist in underserved markets, though territory availability requires careful evaluation. Prospective investors should thoroughly review the FDD and conduct comprehensive due diligence, including market analysis and existing franchisee interviews, before making investment decisions.
Expected Investment Range
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Average Gross Sales
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Financing
Financing Details

Franzy connects you with top-tier financing partners to help secure the funds to invest in a franchise like Fatburger. Whether you're looking for a loan or exploring other financial products, our partners provide expert guidance to ensure you obtain the necessary capital. They specialize in offering solutions tailored to the needs of franchisees, making the process of securing financing smooth and straightforward.

Why Financing with Franzy Partners?

Choosing to finance through Franzy's partners ensures you get the best terms and support for your franchise investment. Our partners have extensive experience in the franchising industry and offer specialized financial solutions tailored to your needs. With competitive interest rates and flexible repayment options, you can find the right financing plan that fits your budget and goals. Our partners are committed to providing personalized guidance throughout the financing process, making it easier for you to secure the necessary funds and confidently move forward with your franchise venture.

Finance Partners
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CRF USA

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First Bank of the Lake

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Golden Capital Solutions

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Location Analysis
Fatburger maintains a strategic presence across multiple states, showing strong regional concentration in the Western United States. The brand has established a notable presence in California, with additional markets in Nevada, Pennsylvania, Virginia, and Washington, indicating a successful West Coast-centric expansion model. Customer review data suggests consistent operational performance and customer satisfaction across their locations.

The franchise demonstrates particular strength in urban and suburban markets with high foot traffic and diverse demographics. California's significant presence, especially in Los Angeles and surrounding areas, provides a proven blueprint for success in high-density, multicultural markets. The relatively limited presence in Eastern states presents significant expansion opportunities, particularly in metropolitan areas with similar demographic profiles to successful West Coast locations.

Ideal locations typically feature high visibility in mixed-use developments, proximity to office complexes and entertainment venues, and areas with median household incomes above $65,000. The brand performs particularly well in markets with a strong dining-out culture and appreciation for premium burger concepts. Potential franchisees should focus on metropolitan areas with growing millennial populations and established food delivery infrastructure, as these factors have contributed to success in existing markets.
Total US Locations193
Open Franchises193
Corporate Locations0
Average Sq. FootN/A
Territory Map

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Franchise Net Unit Growth
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Additional Information

Executive Team

Get to know the leadership behind Fatburger. Learn about the experience and expertise of the executive team guiding Fatburger's success. For more details, refer to Item 2 of the Franchise Disclosure Document (FDD).

Litigation

Review any legal actions or pending litigation involving Fatburger. Understanding the legal history helps assess potential risks and the brand's business practices. For more details, refer to Item 3 of the Franchise Disclosure Document (FDD).

Bankruptcy

Review Fatburger's bankruptcy history and any filings by key personnel or affiliates. This critical information provides transparency about the brand's financial stability and management. For more details, refer to Item 4 of the Franchise Disclosure Document (FDD).

Franchisor Assistance

Learn about Fatburger's comprehensive support system for franchisees, including initial training programs and continuous operational assistance. Understanding the available resources and support structure is crucial for franchise success. For more details, refer to Item 11 of the Franchise Disclosure Document (FDD).

Frequently Asked Questions
Disclaimer

The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2023. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

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