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

Sub-Ology

Sub-Ology is a sandwich-and-fast-casual franchise offering premium subs, wraps, salads and soups made with Boar’s Head meats and locally baked bread, serving lunch and dinner diners, and known for gourmet ingredients and community-oriented atmosphere.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$285,000 - $443,000

D'Angelo Grilled Sandwiches

D'Angelo Grilled Sandwiches is a fast-casual sandwich franchise offering grilled subs, soups, salads and coffee, serving lunch and dinner crowds, and known for flame-roasted flavour, fresh ingredients and community-based franchise experience.

Franchisees

?

22
+
-12%
-12%
Investment

?

$411,000 - $737,000

Submarina California Subs

Submarina California Subs is a submarine-sandwich franchise offering crafted subs with fresh, quality ingredients, serving take-out and delivery customers, and known for California-style flavor, strong franchise support, and award-winning menu.

Franchisees

?

10
+
-9%
-9%
Investment

?

$183,000 - $370,000

Erik's Delicafe

Erik's DeliCafe is a sandwich and soup franchise offering handcrafted sandwiches, slow-simmered soups, salads, and bakery items, serving lunch crowds and families, and known for wholesome ingredients, comforting recipes, and neighborhood hospitality.

Franchisees

?

26
+
0%
0%
Investment

?

$199,000 - $407,000

Lennys Grill & Subs

Lennys Grill & Subs is a fast-casual franchise offering grilled sandwiches, subs, salads, and soups, serving lunch and dinner crowds, and known for freshly prepared items, quality ingredients, and strong local presence.

Franchisees

?

58
+
4%
4%
Investment

?

$283,000 - $577,000

Cheesy Street Grill

Cheesy Street Grill is a fast-casual franchise offering grilled cheese sandwiches, comfort foods, and quick-service menu options, serving lunch and dinner diners, and known for inventive cheese creations, approachable pricing, and brand personality.

Franchisees

?

2
+
0%
0%
Investment

?

$267,000 - $426,000