Krystal Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

143
+
36%
36%
Investment required

?

$788,000 - $2,160,000
Revenue (AUV)

?

$964,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$35,000
Royalty fees

?

5.00%
+
4.50%
Operating Profit

?

10.1%

Pro
Franchisees

?

143
+
36%
36%
Investment required

?

$788,000 - $2,160,000
Franchise fee

?

$35,000
Royalty fees

?

5.00%
+
4.50%
Revenue (AUV)

?

$964,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

10.1%

Pro

Krystal: A Legacy of Affordable Flavor and Southern Charm

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.

While the brand is best known for its original sliders, it has since broadened its offerings to include items like the Krystal Chik, a bite-sized fried chicken sandwich that complements its classic menu. Throughout its evolution, Krystal has remained true to its founding values: quality food, affordable prices, and an unwavering commitment to cleanliness.

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

Franchise Disclosure Document

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Competitors

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

143

+
36%
36%
No growth
New

$35,000

$788,000

-

$2,160,000

n.a.

$964,000

Pro

68.8%

Pro

10.1%

Pro

Food & Beverage

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.

Number of units

2024
Franchised units

105

127

143

Company-owned units

182

160

137

Total units

287

287

280

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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