Fatburger franchise
2025 filing · April 30, 2025Fewer locationsShares sales figures
Fatburger at a glance
A burger restaurant cooking made-to-order burgers, fries, onion rings and shakes. At the end of 2024 there were 177 Fatburger locations in the US, all franchised.
The business
- Franchisor
- FATBURGER NORTH AMERICA, INC
- The company that sells the franchises
- Current franchisor selling since
- 1990
- 35 years of selling franchises
- Franchisor based in
- Beverly Hills, California
What you pay
- Cost to open
- $517K–$2.66M
- Fee, build-out and opening working capital
- Franchise fee
- $50,000
- Paid once, when you sign
- Royalty
- 6%
- 6% of net sales, paid weekly
- Brand fund
- 3%
- 3% of net sales
- Renewal fee
- See terms
- 40% of then-current initial fees
- Agreement length
- 15 years
- Franchisor financing
- None offered
Where it is
- US locations, 2024
- 177
- Franchised and company-owned
- Franchised
- 177
- Company-owned
- 0
- Change in 3 years
- −15
- Franchised locations, 2022–2024
- States
- 22
- Most in Canada, California and Nevada
From FATBURGER NORTH AMERICA, INC’s 2025 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Fatburger among all franchises with the same figure.
| Figure | Fatburger | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $1,587,100 | Costs more than 90% of franchises |
| Franchise feePaid once, when you sign | $50,000 | Higher than 70% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 177 | More than 84% of franchises |
| Sales per locationYearly, as the brand reports it | $1,300,556 | Higher than 73% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 0.8× | Lower than 87% of brands that share sales figures |
How much a Fatburger franchise costs
Opening one Fatburger costs an estimated $517,300 to $2,656,900. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements; construction costs ($150,000 to $1,500,000) and equipment, decor & furnishings ($160,000 to $600,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Fee | $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 | |
Source: FATBURGER NORTH AMERICA, INC, 2025 filing, page 34
Fatburger franchise fee
The franchise fee is $50,000. You pay it when you sign the franchise agreement.
Source: FATBURGER NORTH AMERICA, INC, 2025 filing, page 24
Royalty and ongoing fees
| Royalty | 6% of net sales, paid weekly. |
|---|---|
| Brand or marketing fund | 3% of net sales. |
| Transfer | $15,000 |
| Renewal Fee | 40% of then-current initial fees |
| Local Advertising | Currently 1% of total net sales |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: FATBURGER NORTH AMERICA, INC, 2025 filing, pages 26 and 27
Other fees as filed, from pages 27–29. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Fatburger publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average net sales
- $1,300,556
- Median net sales
- $1,098,778
Yearly figures for 2024, covering Fatburger-only (not co-branded) franchised U.S. restaurants open all 12 months of 2024 (31 locations). The average is about 0.8 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: FATBURGER NORTH AMERICA, INC, 2025 filing, pages 80–84
SBA loans to Fatburger franchisees
Lenders approved 37 SBA-backed loans for Fatburger franchisees from 1996 to 2025, $17.8M in all: 34 7(a) loans and 3 504 loans. Of the 23 that have ended, 20 were paid in full and 3 were charged off (13%). The other 14 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2024 / 2022–2024. Typical means the median: half of brands are above it, half below.
| Measure | Fatburger | Typical burger brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | −4.8% / −7.8% | 0% / −2.4% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 15% / 38% | 3.7% / 6.3% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical burger brand is the median of the 29 brands in burger franchises with three years of counts.
How Fatburger compares
Of the 63 burger franchises on this site, Fatburger is the 29th cheapest to open and the 18th largest by number of locations.
| Figure | Fatburger | Typical burger brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $517K | $556K | $222K |
| Cost to open, high end | $2.66M | $1.52M | $477K |
| Franchise fee | $50K | $35K | $40K |
| Royalty | 6% | 5% | 6% |
| Brand fund | 3% | 2% | 2% |
| Sales per location | $1.3M | $1.56M | $794K |
| US locations | 177 | 25 | 21 |
| Shares earnings figures | Yes | 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 |
|---|---|---|---|---|
| 2021 | 193 (+10) | 0 | – | – |
| 2022 | 203 (+11) | 0 | +27 | −16 |
| 2023 | 186 (−17) | 0 | +11 | −28 |
| 2024 | 177 (−9) | 0 | +19 | −28 |
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.
Over 4 years, from the start of 2021 to the end of 2024, franchised locations went from 183 to 177 (−6, −3%). The earlier years come from the brand's 2024 filing.
Source: FATBURGER NORTH AMERICA, INC, 2025 filing, page 86
2021: FATBURGER NORTH AMERICA, INC, 2024 filing, page 81
Where Fatburger locations are
At the end of 2024, Fatburger had franchised locations in 23 states and territories. The most are in Canada, California and Nevada.
- Canada67
- California46
- Nevada9
- Texas9
- Washington7
- Mexico5
| State | Franchised |
|---|---|
| Canada | 67 |
| California | 46 |
| Nevada | 9 |
| Texas | 9 |
| Washington | 7 |
| Mexico | 5 |
| Arizona | 4 |
| Democratic Republic of Congo | 4 |
| Kurdistan | 4 |
| Pennsylvania | 3 |
All 23 states
| Qatar | 3 |
|---|---|
| Florida | 2 |
| Illinois | 2 |
| New Mexico | 2 |
| Tunisia | 2 |
| Alaska | 1 |
| Colorado | 1 |
| France | 1 |
| Louisiana | 1 |
| Morocco | 1 |
| New Jersey | 1 |
| Pakistan | 1 |
| Puerto Rico | 1 |
Source: FATBURGER NORTH AMERICA, INC, 2025 filing, page 86
Who owns Fatburger?
Fatburger franchises are sold by FATBURGER NORTH AMERICA, INC. It is a subsidiary of FAT Brands, Inc.
Fatburger is one of the 9 FAT Brands franchises here. FAT Brands is a public company whose shares were listed on Nasdaq. It and its affiliate Twin Hospitality filed for Chapter 11 bankruptcy protection in January 2026 to restructure their debt.
From FATBURGER NORTH AMERICA, INC’s 2025 filing, page 10; FAT Brands.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 19–23. |
|---|---|
| Bankruptcy | The franchisor, its parent FAT Brands and their affiliates filed for Chapter 11 in January 2026. |
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: FATBURGER NORTH AMERICA, INC, 2025 filing, litigation on pages 19–23, bankruptcy on page 23
Fatburger filings
A franchisor files a new disclosure each year it sells franchises. The figures on this page come from FATBURGER NORTH AMERICA, INC’s 2025 filing, issued April 30, 2025; the earlier ones below are on record with the Minnesota Department of Commerce and fill in older location counts.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | April 30, 2025 | Minnesota | Costs, fees and locations, 2022–2024 |
| 2024 filing | – | Minnesota | Locations, 2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other burger franchises
All burger franchises
Fatburger is also on these lists: fast food franchises, restaurant franchises, food franchises.
Other brands from FAT Brands: Buffalo's Cafe, Elevation Burger, Fazoli's, Great American Cookies, Hot Dog on a Stick, Johnny Rockets, Marble Slab Creamery and Pretzelmaker. See all 9 in the finder