Smashburger

Smashburger Franchise FDD, Costs & Fees (2025)

Fast-casual burger restaurant franchise known for its gourmet burgers made with fresh, never frozen beef, offering a variety of customizable options.

Smashburger has become a standout name in the fast-casual dining scene, known for transforming the burger experience. Launched in Denver in June 2007, this brand quickly made a mark by delivering top-tier, made-to-order burgers that appeal to burger enthusiasts.

Their distinctive method, using certified Angus beef and a unique smashing technique, guarantees that every burger is bursting with flavor and juiciness, distinguishing Smashburger from typical fast-food options.

Based in Denver, Colorado, Smashburger began franchising in 2008, just a year after it was founded. This strategic initiative aimed to broaden its reach, allowing more people to enjoy its exceptional burger experience.

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 Fees $40,000
Leasehold Improvements $710,000 – $1,257,000
Furniture, Fixtures and Equipment $264,000 – $458,000
Signage $25,000 – $60,000
IT, POS System $40,000 – $50,000
Three Month’s Rent $28,000 – $38,000
Security Deposit, Business Licenses $0 – $26,000
Opening Inventory and Supplies $20,000 – $28,000
Grand Opening Advertising $10,000 – $15,000
Training Expenses $35,000 – $101,000
Grand Opening Training $0 – $30,000
Miscellaneous Opening Costs $1,000 – $5,000
Professional Fees $5,000 – $15,000
Architecture and Building Design Fees $20,000 – $50,000
Insurance Premiums – 3 Months $20,000 – $40,000
Liquor Licensing $10,000 – $21,000
Lease Review Fee $1,500
Additional Funds - 3 months $10,000 – $20,000
Total Estimated Initial Investment $1,239,500 – $2,255,500

Franchise Disclosure Document

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Competitors

Below are some of

Smashburger

key competitors in the

Burger

sector.

Started franchising
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Franchise fee

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Royalty fee

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Investment

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Revenue (AUV)

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Gross Profit

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EBITDA

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Home-based

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Passive investment

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FDD
Smashburger
2008
65
+
-21%
-21%
$40,000
5.50%

$1,240,000

-

$2,256,000

n.a.

$0

Upgrade

n.a.

n.a.

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n.a.

n.a.

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No
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No
No
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No
2016
2
+
0%
0%
$40,000
5.00%

$484,000

-

$802,000

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n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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No
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No
No
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No
19
+
375%
375%
$35,000
6.00%

$1,298,000

-

$1,994,000

Upgrade

n.a.

$1,697,000

n.a.

n.a.

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n.a.

n.a.

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2013
3
+
0%
0%
$50,000
4.00%

$1,223,000

-

$3,308,000

Upgrade

n.a.

$1,440,000

n.a.

n.a.

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n.a.

n.a.

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Upgrade
Upgrade
2024
2
+
100%
100%
$40,000
5.00%

$1,635,000

-

$4,888,000

Upgrade

n.a.

$4,337,000

71.3%

n.a.

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n.a.

n.a.

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2022
2
+
n.a.
n.a.
$40,000
6.00%

$559,000

-

$3,168,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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No
Upgrade
No
No
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No
2015
24
+
0%
0%
$35,000
6.00%

$183,000

-

$482,000

Upgrade

n.a.

$805,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade

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Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

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Franchise Disclosure Documents
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Priority support

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Training 

The franchisor offers an extensive training program for franchisees, encompassing various critical aspects of business operations. The training includes:

Orientation/Training Overview

This initial session consists of 5 hours of classroom instruction, providing a comprehensive introduction to the franchise system and outlining key expectations.

Back of House Functional Training

Concentrating on kitchen operations, this segment involves 42 hours of hands-on training. Franchisees will gain the necessary skills to efficiently manage back-of-house activities.

Front of House Functional Training

Similar to the Back of House training, this segment also includes 42 hours of practical training, focusing on customer service and front-end operations.

The training is held either at a designated facility by the franchisor or virtually, based on the circumstances. This program is designed to thoroughly prepare franchisees for running their Smashburger restaurant, covering both managerial and operational aspects of the business.

Territory Protection

Smashburger franchisees do not receive exclusive territory protection under the standard single-unit Franchise Agreement. While a franchisee secures the right to open at an approved location, the franchisor retains the ability to place additional Smashburger units—or even company-owned stores—nearby. This means franchisees may face competition from other Smashburger outlets within close proximity.

However, franchisees who sign a Multi-Unit Development Agreement are granted rights to open multiple restaurants within a defined geographical development area and timeline.

Even so, this arrangement does not guarantee exclusivity, meaning that competition from nearby Smashburger units or alternative distribution channels may still arise. Franchisees should carefully review the Franchise Disclosure Document and agreements, and consider seeking legal advice if they wish to negotiate protective clauses or understand potential encroachment risks.

Number of units

2025
Franchised units

82

78

65

Company-owned units

135

133

129

Total units

217

211

194

Competitors

Burger Village

Franchisees

?

2
+
0%
0%
Investment

?

$484,000 - $802,000

Smalls Sliders

Franchisees

?

19
+
375%
375%
Investment

?

$1,298,000 - $1,994,000

JL Beers

Franchisees

?

3
+
0%
0%
Investment

?

$1,223,000 - $3,308,000

Jollibee

Franchisees

?

2
+
100%
100%
Investment

?

$1,635,000 - $4,888,000

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