2025 FDD Issued Apr 30, 2025, amended Feb 10, 2026 Minnesota Commerce (CARDS)
Fatburger Franchise Cost (2025)
A Fatburger franchise costs an estimated $517,300 – $2,656,900 to open, according to Item 7 of the 2025 Franchise Disclosure Document (FDD). That total includes the $50,000 initial franchise fee (Item 5) and covers this format: Traditional Restaurant. Item 6 lists royalty: 6% of Net Sales, subject to the conditions below. This record has unresolved source-review issues and was published provisionally before independent verification was complete.
Read the source-review hold before using these figures.
- Total investment
- $517K – $2.66MItem 7 source and qualifications
- Franchise fee
- $50KItem 5 source and terms
- Royalty
- 6% of Net SalesItem 6 conditions and fee bases apply
- Brand fund
- 3% of Net SalesItem 6 conditions and fee bases apply
What stands out about Fatburger
The franchisor is in bankruptcy. Item 4 of the amended FDD says the franchisor, its parent and its affiliates filed voluntary petitions for bankruptcy reorganization to restructure corporate debt, and that the franchisor could be sold, possibly to a competitor or to a buyer with no franchise experience. The document predates any outcome of that case.
U.S. restaurants are declining. Item 20 shows 11 U.S. openings in 2024 against 21 closures, all classed as ceased operations rather than terminations, leaving 88 franchised U.S. restaurants, with a similar number operating abroad.
Location type shapes Item 19. Casino restaurants posted the highest average net sales and in-line strip-mall units the lowest of the main formats, against an overall average of $1,144,270 for U.S. restaurants open the full year. Labor cost ran above food cost as a share of sales.
The cost range is unusually wide. Item 7 runs from $517,300 to $2,656,900, led by leasehold improvements, and notes that a liquor license alone can cost far more in some states. Item 6 sets a royalty of 6% of Net Sales and a fund contribution of 3% of Net Sales that the franchisor may raise, and renewals carry the rates then charged to new franchisees.
What are the initial franchise fees and financial requirements for Fatburger?
Item 5 lists an initial franchise fee of $50,000 for Fatburger. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF pages 24-26): currently $50,000 at signing, fully earned and not refundable. The franchisor may waive or reduce it or accept interest-free installments over 1 to 18 months; fees paid in 2024 ranged from $0 to $50,000. A Multi-Unit Restaurant Agreement charges $50,000 per required restaurant, credited against each initial fee. Grand opening marketing of $7,500 to $10,000 is required.
Source: Fatburger 2025 FDD, Item 5, PDF p. 24.
This record lists no minimum net worth or liquid-capital requirement for Fatburger, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Fatburger franchise? (Item 7)
Source: Fatburger 2025 FDD, Item 7, PDF p. 34.
Item 7 of Fatburger’s 2025 Franchise Disclosure Document estimates the total cost to open one traditional restaurant at $517,300 – $2,656,900. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Fee | $50,000 | $50,000 |
| Leasehold Improvements; Construction Costs | $150,000 | $1,500,000 |
| Equipment, Decor & Furnishings | $160,000 | $600,000 |
| Signage | $10,000 | $125,000 |
| Point of Sale Systems (POS) and related technology | $16,100 | $38,000 |
| TV / Audio Video / Security | $8,000 | $35,000 |
| Restaurant Small Wares | $11,500 | $19,000 |
| Initial Inventory | $7,200 | $10,400 |
| Security Deposits (Utilities, Insurance, etc.) | $9,000 | $32,500 |
| Insurance and Bonds | $8,000 | $12,000 |
| Rent | $3,500 | $20,000 |
| Miscellaneous (legal, accounting, licenses, permits) | $14,000 | $25,000 |
| Liquor Licenses and Fees | $5,000 | $75,000 |
| Grand Opening & Marketing Materials | $7,500 | $10,000 |
| Training | $32,500 | $65,000 |
| Additional Funds - three months | $25,000 | $40,000 |
| Total | $517,300 | $2,656,900 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
Item 7 (PDF pages 34-38) prints $517,300 to $2,656,900 for a new traditional restaurant; its 16 lines add to that total. Leasehold improvements ($150,000 to $1,500,000) and equipment ($160,000 to $600,000) drive the range; buildings are generally 1,600 to 2,000 square feet, and liquor licenses can cost $200,000 or more in some states. Co-branded Buffalo's Cafe, Hurricane Grill & Wings or Hot Dog on a Stick additions cost an estimated $36,500 to $88,000 more plus $25,000 in fees, under separate FDDs.
What ongoing royalties and fees does Fatburger charge? (Item 6)
Source: Fatburger 2025 FDD, Item 6, PDF p. 26.
Item 6 of Fatburger’s 2025 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty | 6% of Net Sales | Every period | 6% of total net sales, due the 2nd Tuesday after each weekly accounting period; overdue amounts carry 1.5% monthly interest and a $25 weekly late fee. Co-branded sales are split with the affiliate brand. (Item 6, PDF p. 26) |
| National Advertising Fund | 3% of Net Sales | Every period | Currently 3% of total net sales, paid weekly; the franchisor may raise it to 4%. (Item 6, PDF p. 27) |
| Local Advertising | 1% of Net Sales | Every period | Currently 1% of total net sales spent on approved local advertising, reported every 6 months. (Item 6, PDF p. 27) |
| Additional Training | Varies | When it applies | Training costs up to $1,500 per week per person beyond the 5 trained free. (Item 6, PDF p. 27) |
| Reimbursement for Rescheduled Training Expenses | Varies | When it applies | Extra travel and wages if your scheduled opening date changes. (Item 6, PDF p. 28) |
| Reimbursement for Pre-Opening and Post-Opening Assistance | Varies | When it applies | Travel and a per-diem (currently $100 per day per person) plus wages for opening staff; the franchisor bears up to $20,000 of labor costs for a first restaurant. (Item 6, PDF p. 28) |
| Brand Technology System Support Services | $840 – $1,500 per year | Every period | Currently $840 to $1,500 a year for mandatory help desk, network hardware and firewall services, plus up to $3,250 a year for optional services. (Item 6, PDF p. 28) |
| Transfer | $15,000 | When it applies | $15,000 with a transfer request, unless waived or reduced; no charge for a transfer to your own entity. (Item 6, PDF p. 29) |
| Audit | Varies | When it applies | Audit costs plus interest and late fees if an underpayment of at least 2% is found. (Item 6, PDF p. 29) |
| Indemnification | Varies | When it applies | Varies; limited to certain circumstances (Item 9). (Item 6, PDF p. 29) |
| Reimbursement of Cost of Insurance | Varies | When it applies | The cost of insurance the franchisor buys for you, plus a fee. (Item 6, PDF p. 29) |
| Unapproved Product/Supplier Fee | Varies | When it applies | $500 per day for selling unapproved items or buying from unapproved suppliers. (Item 6, PDF p. 29) |
| Damages, Costs and Expenses, Including Attorneys' Fees | Varies | When it applies | Amounts the franchisor incurs because of your default or to enforce the agreement. (Item 6, PDF p. 29) |
| Sales or Similar Taxes | Varies | When it applies | Taxes imposed on the franchisor because of your payments. (Item 6, PDF p. 29) |
| Renewal Fee | Varies | When it applies | 40% of the then-current initial fees, due 90 days before renewal. (Item 6, PDF p. 29) |
| Securities/Partnership Interests in Franchisee Offering | Varies | When it applies | $10,000 or the franchisor's review costs, whichever is greater, if you offer securities or partnership interests. (Item 6, PDF p. 29) |
| Management Fee | Varies | When it applies | Only under a Management Agreement: negotiated shares of Net Sales, monthly fees, quarterly net income and sale proceeds, plus expenses. (Item 6, PDF p. 30) |
| Plan and Design Review | Varies | When it applies | Up to $3,000 if you use an architect other than the approved one. (Item 6, PDF p. 31) |
| Lease Review Fee | Varies | When it applies | Up to $2,500 to review and accept your lease. (Item 6, PDF p. 31) |
| Fines | Varies | When it applies | Then-current fines in the Manuals for violations. (Item 6, PDF p. 31) |
| Cookie Equipment Lease | Varies | When it applies | Only if cookies are added: an estimated $360 a year (about $1,440 over 4 years), with a minimum purchase of 24 cases of ingredients a year or $15 per missing case. (Item 6, PDF p. 31) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Fatburger startup investment and modeled fees over 10 years
A source check placed this record on review hold. Automatic fee estimates are withheld until the outstanding issues are resolved. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Fatburger franchised outlet history
Source: Fatburger 2025 FDD, Item 20, PDF p. 87.
Item 20 Table 3 reports 88 franchised outlets at the end of 2024. The company-owned table reports a further 0 outlets.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2022 | 101 | 16 | 10 | 107 | — |
| 2023 | 107 | 4 | 13 | 98 | — |
| 2024 | 98 | 11 | 21 | 88 | — |
Calculated outlet totals, net growth and exit rates are withheld because this record has not cleared the current Item 20 source checks. The table retains the outlet counts printed in Item 20. Read the unresolved source issues.
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables.
3 units changed owners in 2024.
Item 20 Table 3 (PDF pages 87-89) separates U.S. and international outlets; this record uses the Total U.S. rows. Including international restaurants, the system went from 192 to 203 (2022), 186 (2023) and 177 (2024). There are no affiliate-owned restaurants. All transfers were in California. Table 5 lists 16 signed agreements not yet open and 34 projected franchised openings, including Canada.
How much do Fatburger franchise owners make? (Item 19)
Source: Fatburger 2025 FDD, Item 19, PDF p. 81.
Item 19 of the 2025 FDD reports average Net Sales, all U.S. franchised Fatburger Restaurants of $1,144,270 (January 1 to December 31, 2024, 66 of 88 U.S. franchised Restaurants open the full 12 months; 29 (43.94%) at or above the average). Fatburger’s Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees come out of sales before an owner is paid, so these figures cannot show what an owner earns.
Read the source-review hold before using this figure.
See every Fatburger Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret Fatburger’s Item 19 figures and sample limits.
How long is the Fatburger franchise agreement term?
Source: Fatburger 2025 FDD, Item 17, PDF p. 68.
The standard Fatburger franchise agreement runs 15 years, with renewal terms of 10 years.
Item 17 (PDF page 68): a 15-year term with 2 ten-year renewals if you are in good standing; royalty and fund rates on renewal are those then charged to new franchisees.
How long does it take to open a Fatburger franchise? (Item 11)
Source: Fatburger 2025 FDD, Item 11, PDF p. 56.
Item 11 of the 2025 FDD states the time from signing the Franchise Agreement (the restaurant must open within 12 months) to opening: 4 to 12 months.
Franchises with a similar investment range
These published records are selected by proximity to Fatburger’s $517,300 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
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- Jersey Mike's $436K – $1.16M Restaurants & Food
- Firehouse Subs $405K – $876K Restaurants & Food
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Sources
Fatburger North America, Inc. Franchise Disclosure Document, issued April 30, 2025, as amended February 10, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 24
- Item 6: cited PDF p. 26
- Item 7: cited PDF p. 34
- Item 19: cited PDF p. 80
- Item 20: cited PDF p. 87
- Agreement term (Item 17): cited PDF p. 68
Page references for Fatburger use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- November 3, 2026: Source review hold recorded. Unresolved corrections are listed in this source section.
- November 3, 2026: Initial cost profile published from the 2025 Franchise Disclosure Document (issued April 30, 2025).
- November 3, 2026: Rechecked against the April 30, 2025 Minnesota FDD as amended February 10, 2026: Items 1, 4, 5, 6, 7, 11, 17, 19 and 20. Item 20 now uses the Total U.S. rows instead of figures that included international restaurants. Item 6 now lists all 21 rows (the draft had 8), the franchise fee is the standard $50,000, and the amendment date and chapter 11 filing are recorded. Removed founding dates the FDD does not state and rewrote the analysis. The stale-source hold remains and is disclosed.
- November 2, 2026: Provisional publication approved per owner directive: Owner directed on November 2, 2026 that every remaining batch 6 brand go live, including brands whose FDDs print conflicting figures. Each record was rechecked against its FDD on November 3, 2026; the unresolved source conflicts remain disclosed and the record is not marked verified.
- February 10, 2026: Amendment date recorded for the source FDD.