Fatburger Franchise

Fatburger, a FAT Brands franchise, has been franchising since 1981 - 34 years after the concept was founded in 1947 , currently with 200 total locations in the food & beverage sector, headquartered in CA. According to the 2024 FDD, the total initial investment ranges from $700K to $1.4M - a 100% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $50K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 6.0% of gross sales with an additional 2.0% national advertising fund contribution, bringing the combined ongoing cost to 8.0% of every dollar in sales. Notably, Fatburger does not disclose financial performance (Item 19) in its FDD. That is common (Item 19 is optional under the FTC Franchise Rule) but it puts the burden on prospective buyers to survey existing franchisees (Item 20 contact list), model unit economics from public comparables, and demand validated profit-and-loss data before signing.

Network momentum is currently positive: Fatburger added units at a 5.0% net rate year-over-year (20 openings, 10 closures). Sustained positive growth is a signal that the unit-economics are working well enough to attract new operators, though late-stage growth can also reflect aggressive sales push rather than operational health. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.