Nathan’s Famous

Nathan’s Famous Franchise FDD, Costs & Fees (2025)

Fast-food franchise famous for its hot dogs and crinkle-cut fries, serving a variety of classic American comfort foods in a casual dining setting.

Nathan's Famous, known for its premium all-beef hot dogs and diverse quick-service menu, embarked on its culinary journey in 1916. The brand was established by Nathan Handwerker, a Polish immigrant, who started with a small hot dog stand in Coney Island, New York.

Over the years, it has grown into a prominent player in the quick-service restaurant (QSR) industry. Nathan's began franchising in 1975 and is currently based in Jericho, New York.

What sets Nathan's Famous apart is its extensive menu, featuring not only its iconic hot dogs but also Fresh Angus Burgers, Black Angus Ribeye New York Cheesesteaks by Pat LaFrieda, Hand-Breaded Chicken, Onion Rings, and Fresh Crinkle Cut French Fries. The brand is well-regarded for its lively and inviting restaurant ambiance, which has bolstered its reputation for over a century.

Nathan's Famous provides various franchise models to accommodate different investment levels and space requirements, ranging from custom-built standalone stores to mobile carts, all serving the brand’s popular menu items.

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.

Nathan’s Famous offers 4 types of franchises:

Franchise Option Initial Investment
Nathan's Famous traditional free-standing restaurant $554,350 to $2,032,610
"In-line" restaurant or restaurant operated in a food court $359,100 to $1,146,860
Restaurant operated from a kiosk $103,850 to $305,000
Restaurant operated as a Mobile Unit $82,200 to $364,100

We are summarizing below the main costs associated with opening a Nathan's Famous traditional free-standing restaurant franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Nathan's Famous traditional free-standing restaurant

Type of Expenditure Amount
Initial Franchise Fee $30,000
Real Estate Rent $60,000 - $195,000
Restaurant Construction $250,000 to $1,300,000
Site Preparation $25,000 to $170,000
Furniture, Fixtures, and Equipment $145,000 to $245,000
Pre-Opening and Inventory Expenses $10,000 to $15,000
Training Expenses $2,250 to $10,360
Insurance $5,000 to $7,500
Security Deposits $0
Utility Deposits $2,500 to $6,500
Professional Fees $12,000 to $25,000
Business Licenses $100 to $750
Additional Funds (for first three months) $10,000 to $25,000
Grand Opening Advertising $2,500
Total (Without Co-branding) $554,350 to $2,032,610

Nathan’s Famous offers 4 types of franchises:

Franchise Option Initial Investment
Nathan's Famous traditional free-standing restaurant $554,350 to $2,032,610
"In-line" restaurant or restaurant operated in a food court $359,100 to $1,146,860
Restaurant operated from a kiosk $103,850 to $305,000
Restaurant operated as a Mobile Unit $82,200 to $364,100

We are summarizing below the main costs associated with opening a Nathan's Famous traditional free-standing restaurant franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Nathan's Famous traditional free-standing restaurant

Type of Expenditure Amount
Initial Franchise Fee $30,000
Real Estate Rent $60,000 - $195,000
Restaurant Construction $250,000 to $1,300,000
Site Preparation $25,000 to $170,000
Furniture, Fixtures, and Equipment $145,000 to $245,000
Pre-Opening and Inventory Expenses $10,000 to $15,000
Training Expenses $2,250 to $10,360
Insurance $5,000 to $7,500
Security Deposits $0
Utility Deposits $2,500 to $6,500
Professional Fees $12,000 to $25,000
Business Licenses $100 to $750
Additional Funds (for first three months) $10,000 to $25,000
Grand Opening Advertising $2,500
Total (Without Co-branding) $554,350 to $2,032,610

Franchise Disclosure Document

Number of units

Training 

Nathan's Famous provides an extensive training program for its franchisees, blending classroom and practical on-the-job training sessions. The program covers a range of critical topics, including:

Food Preparation: Franchisees learn the intricacies of preparing dishes to meet Nathan's Famous quality standards.

Equipment Operation: This segment teaches proper equipment operation to ensure consistent and high-quality food.

Sanitation: Franchisees are trained in adhering to strict sanitation standards.

Food Cost Management: Understanding and managing food costs is essential for profitability, and this segment addresses these skills.

Labor Scheduling: Franchisees learn to effectively manage staff schedules to optimize operations.

Train the Trainer: This unique segment empowers franchisees to train their staff, maintaining the brand’s standards across all locations.

Customer Service: Emphasizing the importance of customer satisfaction, this segment focuses on delivering exceptional service.

Territory Protection

Nathan's Famous does not grant franchisees an exclusive territory, which means franchisees may encounter competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by the company.

Franchisees are authorized to operate a "Nathan's Famous" restaurant only at the specific location designated in their Franchise Agreement. Any relocation of the restaurant requires prior approval from the company. For franchisees operating a Mobile Unit, there are additional territorial restrictions.

The Mobile Unit Territory excludes any area within a two-mile radius of any existing or newly-established permanent "Nathan's Famous" restaurants within the Mobile Unit Territory.

Competitors

Below are some of

Nathan’s Famous

key competitors in the

Sandwich

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Upgrade
Gross Profit
Upgrade
EBITDA
Upgrade

72

New
+
-15%
-15%

$30,000

$82,000

$1,235,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Competitors

Blimpie

Blimpie is a sandwich shop franchise known as “America’s Sub Shop,” offering handcrafted subs, salads, and wraps in traditional and express formats, supported by established brand recognition and operational guidance.

Franchisees

?

97
+
-15%
-15%
Investment

?

$90,000 - $589,000

Potbelly Sandwich

Potbelly Sandwich Shop is a fast-casual restaurant franchise known for its toasted sandwiches, soups, and salads. It emphasizes a warm, neighborhood atmosphere and uses high-quality ingredients to deliver comfort food.

Franchisees

?

95
+
111%
111%
Investment

?

$654,000 - $1,274,000

Sourdough & Co

Sourdough & Co is a fast-casual restaurant franchise known for its gourmet sandwiches, soups, and salads served on freshly baked sourdough bread in a warm, inviting setting.

Franchisees

?

78
+
2500%
2500%
Investment

?

$286,000 - $569,000

I Heart Mac and Cheese

I Heart Mac and Cheese is a fast-casual restaurant franchise specializing in customizable mac and cheese bowls, grilled cheese sandwiches, and comfort food.

Franchisees

?

33
+
267%
267%
Investment

?

$330,000 - $809,000

South Philly Steaks and Fries

South Philly Steaks and Fries is a casual dining franchise that serves classic Philly cheesesteaks, hearty sandwiches, and crispy fries with a focus on bold and satisfying flavors.

Franchisees

?

1
+
0%
0%
Investment

?

$321,000 - $607,000

Roly Poly

Roly Poly serves a variety of rolled sandwiches and wraps, offering fresh and flavorful meal options in a convenient format.

Franchisees

?

25
+
-22%
-22%
Investment

?

$107,000 - $227,000