Krystal Franchise FDD, Costs & Fees (2025)

Fast-food chain specializing in small, square-shaped hamburgers, offering a menu of affordable and quick meal options.

Krystal has long held a special place in the American fast-food landscape, recognized for its signature square hamburgers and deep Southern roots. The brand traces its origins back to 1932 in Chattanooga, Tennessee, where founders Rody Davenport Jr. and J. Glenn Sherrill introduced a dining concept centered on cleanliness, consistency, and value—an approach that resonated during the challenging era of the Great Depression.

The restaurant’s name was inspired by a crystal lawn ornament that caught the attention of Davenport’s wife. She remarked that a restaurant should reflect the same sparkling clarity, leading to the creation of “Krystal”—a name deliberately spelled with a “K” to give it a unique and memorable identity.

Initially operating through company-owned locations, Krystal began offering franchise opportunities in 1990, opening the door for entrepreneurs to become part of its growing legacy.

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.

Krystal offers 2 types of franchises:

Type of Krystal Franchise Initial Investment Range
Standard Traditional or Non-Traditional Franchise $1,380,500 – $2,160,000
Conversion Franchise $788,000 – $1,520,000

We are summarizing below the main costs associated with opening a Standard Traditional or Non-Traditional Krystal Franchise. For more information on costs required to start a Krystal franchise, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure Amount
Initial Franchise Fee $35,000 – $35,000
Professional Fees and Closing Costs $6,000 – $10,000
Site Development $300,000 – $500,000
Building Construction $500,000 – $800,000
Equipment $280,000 – $330,000
Computers, Network, and POS Systems $30,000 – $60,000
Signage $50,000 – $140,000
Insurance $9,000 – $15,000
Architecture Fees and Permits $55,000 – $80,000
Onsite Assistance and Opening Support $10,000 – $10,000
Opening Training Expenses $12,000 – $15,000
Initial Inventory $12,000 – $18,000
Grand Opening Advertising $7,500 – $15,000
Miscellaneous Opening Costs $24,000 – $32,000
Additional Funds – 3 Months $50,000 – $100,000
Total Estimated Initial Investment $1,380,500 – $2,160,000

Krystal offers 2 types of franchises:

Type of Krystal Franchise Initial Investment Range
Standard Traditional or Non-Traditional Franchise $1,380,500 – $2,160,000
Conversion Franchise $788,000 – $1,520,000

We are summarizing below the main costs associated with opening a Standard Traditional or Non-Traditional Krystal Franchise. For more information on costs required to start a Krystal franchise, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure Amount
Initial Franchise Fee $35,000 – $35,000
Professional Fees and Closing Costs $6,000 – $10,000
Site Development $300,000 – $500,000
Building Construction $500,000 – $800,000
Equipment $280,000 – $330,000
Computers, Network, and POS Systems $30,000 – $60,000
Signage $50,000 – $140,000
Insurance $9,000 – $15,000
Architecture Fees and Permits $55,000 – $80,000
Onsite Assistance and Opening Support $10,000 – $10,000
Opening Training Expenses $12,000 – $15,000
Initial Inventory $12,000 – $18,000
Grand Opening Advertising $7,500 – $15,000
Miscellaneous Opening Costs $24,000 – $32,000
Additional Funds – 3 Months $50,000 – $100,000
Total Estimated Initial Investment $1,380,500 – $2,160,000

Franchise Disclosure Document

Number of units

Training

Krystal provides a multi-layered training system designed to prepare franchisees and their teams for effective restaurant operations and ongoing success. Training includes corporate programs, hands-on support, and specialized modules for new and existing team members.

  1. General Manager Training Program (GMT Program)
    Franchisees, including the Operating Owner and General Manager, must complete the GMT Program before opening. It is conducted at a designated location, covers operational procedures, and is provided free for up to seven participants.
  2. Franchisee Orientation Program
    This five-day program held at Krystal’s corporate headquarters includes 40 hours of on-the-job training across various functions such as operations, marketing, and technology. Attendance is required for the Operating Owner and other leadership if not attending the GMT Program.
  3. Restaurant Management Training
    Conducted during the 10 days leading up to the opening, this hands-on training is part of the Onsite Assistance and Opening Support Fee. It includes travel and accommodation expenses for Krystal trainers.

Territory Protection

Krystal grants franchisees a non-exclusive “Protected Area” based on factors like urban or suburban location, demographics, and proximity to existing units. The typical radius ranges from 0.5 to 1 mile in urban settings, and up to 5 miles in rural ones.

While Krystal agrees not to open another restaurant within this area during the agreement term, the franchisee does not receive an exclusive territory. Despite the protection, Krystal retains broad rights to operate or license others at Non-Traditional Locations such as airports, colleges, or stadiums—even within the Protected Area.

The franchisor also reserves the right to distribute products through retail, delivery, e-commerce, or other channels without compensating the franchisee. Moreover, multi-area marketing programs may allow other Krystal outlets to promote or sell within the territory.

Competitors

Below are some of

Krystal

key competitors in the

Burger

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
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Gross Profit
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EBITDA
Upgrade

143

New
+
36%
36%

$35,000

$788,000

$2,160,000

n.a.

$964,000

$xxx,xxx

68.8%

xx%

n.a.

10.1%

xx%

n.a.

Competitors

Home Frite

Home Frite is a fast-casual franchise offering gourmet fries, burgers, chicken sandwiches and milkshakes, serving urban diners and comfort-food lovers, and known for hand-cut potatoes, signature sauces, and scalable franchise model.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$351,000 - $506,000

iniBurger

iniBurger is a burger-restaurant franchise offering gourmet burgers, shakes, and innovative sides, serving millennials and casual diners, and known for bold menu items, modern branding and strong franchisee support.

Franchisees

?

3
+
n.a.
n.a.
Investment

?

$302,000 - $686,000

Harlem Shake

Harlem Shake is a burger-and-shake chain franchise offering premium burgers, fries, shakes and craft menu items, serving families and casual diners, and known for nostalgic branding, community vibe, and scalable restaurant prototype.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$412,000 - $849,000

Good Stuff Eatery

Good Stuff Eatery is a fast-casual burger franchise offering handcrafted burgers, crispy fries and shakes, serving casual diners and burger-lovers, and known for chef-driven quality, fun branding and a mission to bring “goodness everywhere”.

Franchisees

?

5
+
0%
0%
Investment

?

$633,000 - $962,000

Built Custom Burgers

Built Custom Burgers provides fast-casual, build-your-own burger meals featuring premium ingredients and a streamlined assembly-line format, allowing customers to customize burgers, fries, and shakes for a fresh and satisfying dining experience.

Franchisees

?

3
+
0%
0%
Investment

?

$409,000 - $1,297,000

Burger Village

Burger Village is an organic burger franchise offering grass-fed beef, bison, and vegan burger options with a focus on sustainability.

Franchisees

?

2
+
0%
0%
Investment

?

$484,000 - $802,000