Burger Factory franchise
2025 filing · May 20, 2025
Burger Factory at a glance
A restaurant serving fresh burgers, fries and funnel cakes. At the end of 2024 there were 1 Burger Factory locations in the US, all company-owned.
The business
- Franchisor
- Burger Factory Franchising LLC
- The company that sells the franchises
- Typical size
- 800–2,000 sq ft
What you pay
- Cost to open
- $354K–$543K
- Fee, build-out and opening working capital
- Franchise fee
- $40,000
- Paid once, when you sign
- Royalty
- 5%
- 5% of gross sales, paid monthly, plus a brand fund contribution of 2% once charged
- Brand fund
- None now
- 2% of gross sales, not charged at present
- Renewal fee
- See terms
- 50% of the then-current Initial Franchise Fee
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2024
- 1
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 1
- Change in 3 years
- 0
- Franchised locations, 2022–2024
- States
- 1
- Most in Illinois
From Burger Factory Franchising LLC’s 2025 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Burger Factory among all franchises with the same figure.
| Figure | Burger Factory | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $448,250 | Costs more than 59% of franchises |
| Franchise feePaid once, when you sign | $40,000 | Lower than 46% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 1 | Fewer than 88% of franchises |
How much a Burger Factory franchise costs
Opening one Burger Factory costs an estimated $353,750 to $542,750. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($100,000 to $185,000) and equipment ($100,000 to $120,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $40,000 | ||
| Furniture and Fixtures | $35,000 | $50,000 | |
| Computer/POS | $3,000 | $5,000 | |
| Leasehold Improvements | $100,000 | $185,000 | |
| Months’ Lease Payments | $18,000 | $30,000 | |
| Security Deposits | $10,000 | ||
| Signage | $20,000 | $30,000 | |
| Insurance | $750 | $1,250 | |
| Equipment | $100,000 | $120,000 | |
| Opening Inventory and Supplies | $10,000 | $15,000 | |
| Training | $3,000 | $10,000 | |
| Additional Trainee Fee | $0 | $6,000 | |
| Grand Opening Advertising and Marketing | $2,000 | $4,000 | |
| Grand Opening Support | $2,500 | ||
| Professional Fees | $1,000 | $4,000 | |
| Licenses | $500 | $5,000 | |
| Additional Funds – 3 Months | $8,000 | $25,000 | |
| Total | $353,750 | $542,750 | |
Source: Burger Factory Franchising LLC, 2025 filing, page 17
Burger Factory franchise fee
The franchise fee is $40,000. You pay it when you sign the franchise agreement.
Source: Burger Factory Franchising LLC, 2025 filing, page 10
Royalty and ongoing fees
| Royalty | 5% of gross sales, paid monthly, plus a brand fund contribution of 2% once charged. |
|---|---|
| Brand or marketing fund | 2% of gross sales, not charged at present. |
| Computer/POS | $3,000 |
| Transfer Fee | 50% of the then-current Initial Franchise Fee |
| Renewal Fee | 50% of the then-current Initial Franchise Fee |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Burger Factory Franchising LLC, 2025 filing, page 11
Other fees as filed, from pages 15–17. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Burger Factory does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Burger Factory Franchising LLC, 2025 filing, page 40
- Estimate Estimated yearly sales per location
- $670K–$1.2M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Burger Factory compares
Of the 63 burger franchises on this site, Burger Factory is the 18th cheapest to open and the 61st largest by number of locations.
| Figure | Burger Factory | Typical burger brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $354K | $556K | $222K |
| Cost to open, high end | $543K | $1.52M | $477K |
| Franchise fee | $40K | $35K | $40K |
| Royalty | 5% | 5% | 6% |
| US locations | 1 | 25 | 21 |
| Shares earnings figures | No | 44 of 63 | 2,147 of 3,352 |
Typical is the median across the 63 brands in burger franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2022 | 0 (0) | 0 | 0 | 0 |
| 2023 | 0 (0) | 0 | 0 | 0 |
| 2024 | 0 (0) | 1 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: burger franchise costs and franchise failure rates.
Source: Burger Factory Franchising LLC, 2025 filing, page 40
Where Burger Factory locations are
At the end of 2024, Burger Factory had locations in 1 state. The most are in Illinois.
- Illinois1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Illinois | 0 | 1 | 1 |
Source: Burger Factory Franchising LLC, 2025 filing, page 41
Who owns Burger Factory?
Burger Factory franchises are sold by Burger Factory Franchising LLC.
From Burger Factory Franchising LLC’s 2025 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Burger Factory Franchising LLC, 2025 filing, litigation on page 10, bankruptcy on page 10
Burger Factory filings
The figures on this page come from Burger Factory Franchising LLC’s 2025 filing, issued May 20, 2025, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | May 20, 2025 | NASAA depository | Costs, fees and locations, 2022–2024 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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