Fatburger Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

193
+
8%
8%
Investment required

?

$509,000 - $1,695,000
Revenue (AUV)

?

$1,080,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$50,000
Royalty fees

?

6.00%
+
4.00%
Operating Profit

?

n.a.

Pro
Franchisees

?

193
+
8%
8%
Investment required

?

$509,000 - $1,695,000
Franchise fee

?

$50,000
Royalty fees

?

6.00%
+
4.00%
Revenue (AUV)

?

$1,080,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

Fatburger: Reinventing the American Burger Experience Since 1947

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

Here's what you would need to invest 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

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

193

+
8%
8%
No growth
New

$50,000

$509,000

-

$1,695,000

n.a.

$1,080,000

Pro

69.9%

Pro

n.a.

Pro

Food & Beverage

Training

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.

  1. 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.
  2. 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.
  3. 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. These sessions are designed to keep franchisees informed about new products, updated procedures, and promotional strategies, reinforcing consistency and quality across all locations.

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.

Additionally, Fatburger can operate or license restaurants under different brand names and can continue to use “non-traditional” venues such as airports or stadiums within the territory, potentially introducing competitive pressures.

Number of units

2023
Franchised units

179

188

193

Company-owned units

0

0

0

Total units

179

188

193

Competitors

Jollibee

Investment required
$1,338,000
-
$3,677,000
Franchisees
1
+
0%
0%

Fat Shack

Investment required
$183,000
-
$482,000
Franchisees
24
+
0%
0%

Wendy’s

Investment required
$393,000
-
$2,992,000
Franchisees
5552
+
-1%
-1%

Wahlburgers

Investment required
$1,140,000
-
$2,755,000
Franchisees
106
+
43%
43%

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