Fatburger serves juicy and flavorful burgers made with fresh ingredients, providing customers with a satisfying and delicious dining experience.
KEY FRANCHISE STATS
Franchisees
?
193
+
8%
8%
Franchise fee
?
$50,000
Investment
?
$509,000 - $1,695,000
Revenue (AUV)
?
Undisclosed
$1,080,000
+
n.a.
n.a.
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Founded in 1947 by Lovie Yancey in Los Angeles, Fatburger has earned its reputation as a standout name in the fast-casual burger scene. Originally opened under the name “Mr. Fatburger,” the restaurant was renamed “Fatburger” in 1952 after Yancey took sole ownership. Her mission was clear—create a one-of-a-kind burger joint that combined quality, customization, and a lively atmosphere that drew everyone from locals to Hollywood stars.
Now headquartered in Beverly Hills, California, Fatburger began franchising in 1985 and has since grown into a global brand. Known for its made-to-order burgers crafted with 100% pure lean beef, the chain allows customers to tailor their orders with a variety of sizes and toppings, staying true to its promise of a personalized dining experience.
A pioneer in innovation, Fatburger became the first national fast-casual chain to launch the plant-based Impossible Burger at all U.S. locations in 2018—catering to a growing base of eco-conscious and health-focused diners.
Several Fatburger outlets also partner with sister brands like Buffalo’s Cafe, known for its signature wings, and Hot Dog on a Stick, offering even greater variety for customers seeking more than just a classic burger.
Initial investment
The initial investment required for a Fatburger franchise is
$509,000 - $1,695,000.
That is the total cost you would need to finance if you were to start this franchise.
These costs are provided by the franchisor in the Franchise Disclosure Document.
Type of Expenditure
Amount
Initial Fee
$50,000 – $50,000
Leasehold Improvements; Construction Costs
$150,000 – $600,000
Equipment, Decor & Furnishings
$160,000 – $600,000
Signage
$10,000 – $100,000
Point of Sale Systems (POS) and related tech
$16,100 – $38,000
Restaurant Small Wares
$10,800 – $17,000
Initial Inventory
$7,200 – $10,400
Security Deposits (Utilities, Insurance, etc.)
$9,000 – $32,500
Insurance and Bonds
$8,000 – $12,000
Rent
$3,500 – $20,000
Miscellaneous (legal, accounting, licenses)
$14,000 – $25,000
Liquor Licenses and Fees
$5,000 – $75,000
Grand Opening & Marketing Materials
$7,500 – $10,000
Training
$32,500 – $65,000
Additional Funds – three months
$25,000 – $40,000
Total
$508,600 – $1,694,900
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Type of Expenditure
Amount
Initial Fee
$50,000 – $50,000
Leasehold Improvements; Construction Costs
$150,000 – $600,000
Equipment, Decor & Furnishings
$160,000 – $600,000
Signage
$10,000 – $100,000
Point of Sale Systems (POS) and related tech
$16,100 – $38,000
Restaurant Small Wares
$10,800 – $17,000
Initial Inventory
$7,200 – $10,400
Security Deposits (Utilities, Insurance, etc.)
$9,000 – $32,500
Insurance and Bonds
$8,000 – $12,000
Rent
$3,500 – $20,000
Miscellaneous (legal, accounting, licenses)
$14,000 – $25,000
Liquor Licenses and Fees
$5,000 – $75,000
Grand Opening & Marketing Materials
$7,500 – $10,000
Training
$32,500 – $65,000
Additional Funds – three months
$25,000 – $40,000
Total
$508,600 – $1,694,900
Franchise Disclosure Document
Below is Fatburger's 2023 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
Fatburger had 193 total units in 2023, of which 193 were franchised-owned and 0 company-owned.
Frequently Asked Questions
What is the royalty fee?
The royalty fee for a Fatburger franchise is 6.00%. In addition, you would have to pay the advertising (or national brand fund) fee of 4.00%.
What is the total investment?
The initial investment required for a Fatburger franchise is $509,000 - $1,695,000. That is the total cost you would need to finance if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.
What is the initial franchise fee?
The initial franchise fee for a Fatburger franchise is $50,000. This is typically paid upfront as part of the total initial investment, after signature of the Franchise Agreeement.
Fatburger provides a comprehensive training program designed to prepare franchisees for the successful operation of a Fatburger restaurant. The training includes both pre-opening preparation and ongoing educational support to maintain brand standards.
Initial Training Program Before opening, franchisees must complete a detailed training program that includes instruction on Fatburger’s systems, procedures, and standards. This training ensures that franchisees understand operational procedures, customer service expectations, and the use of equipment and software relevant to running the restaurant.
Onsite Training and Support Fatburger provides support at the franchisee’s location around the time of opening to ensure all systems are correctly implemented and staff are effectively trained. This phase includes direct oversight and operational guidance from corporate representatives to solidify learning and ensure compliance.
Ongoing Education and Updates Fatburger may also require franchisees to participate in ongoing training sessions, which could be delivered in person, via webinars, or through other digital formats.
Territory Protection
Fatburger offers franchisees a “Protected Territory” as described in their Franchise Agreement. This area typically includes a one-mile radius around the franchised restaurant and is not modified during the term of the agreement.
Within this Protected Territory, Fatburger agrees not to open or authorize another traditional Fatburger restaurant, providing a degree of operational exclusivity for the franchisee.
However, the protection is not absolute. The franchisor reserves broad rights to distribute its products and services through various other channels, including delivery, catering, and online sales, even within the Protected Territory.