Fogo de Chão franchise
2022 filing · April 14, 2022Shares sales figures
Fogo de Chão at a glance
A Brazilian steakhouse carving fire-roasted meats tableside, with a market table and full bar. At the end of 2021 there were 48 Fogo de Chão locations in the US, all company-owned.
The business
- Franchisor
- Fogo de Chão US Franchise LLC
- The company that sells the franchises
- Current franchisor selling since
- 2020
- 2 years of selling franchises
- Franchisor based in
- Dallas, Texas
- Typical size
- 5,000–8,000 sq ft
What you pay
- Cost to open
- $2.67M–$6.72M
- Fee, build-out and opening working capital
- Franchise fee
- $50,000
- Per restaurant, paid as a territory fee for each restaurant in the development schedule when the development agreement is signed
- Royalty
- 5%
- 5% of gross sales, paid monthly
- Brand fund
- 1%
- 1% of gross sales, paid monthly
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2021
- 48
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 48
- Change in 3 years
- 0
- Franchised locations, 2019–2021
From Fogo de Chão US Franchise LLC’s 2022 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Fogo de Chão among all franchises with the same figure.
| Figure | Fogo de Chão | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $4,692,500 | Costs more than 97% of franchises |
| Franchise feePaid once, when you sign | $50,000 | Higher than 70% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 48 | More than 64% of franchises |
How much a Fogo de Chão franchise costs
Opening one Fogo de Chão costs an estimated $2,665,000 to $6,720,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($1,000,000 to $4,000,000) and equipment ($475,000 to $600,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Store Franchise Fee | $50,000 | ||
| Plans | $15,000 | $25,000 | |
| Leasehold Improvements | $1,000,000 | $4,000,000 | |
| Architectural/Engineering/Site Evaluation | $125,000 | $250,000 | |
| Furniture, Decor, and Fixtures | $150,000 | $300,000 | |
| Equipment | $475,000 | $600,000 | |
| Computer/POS System | $150,000 | $200,000 | |
| Interior and Exterior Signage | $50,000 | $100,000 | |
| Initial Inventory | $60,000 | $100,000 | |
| Initial Business Supplies | $35,000 | $70,000 | |
| Smallwares | $50,000 | $75,000 | |
| Business Licenses and Permits | $5,000 | $50,000 | |
| Initial Training Costs | $100,000 | $150,000 | |
| Opening Team Costs | $150,000 | $200,000 | |
| Advertising and Promotional Costs | $50,000 | $100,000 | |
| Other Miscellaneous Pre-opening Expenses | $100,000 | $150,000 | |
| Additional Funds(12) (three to six months) | $100,000 | $300,000 | |
| Total | $2,665,000 | $6,720,000 | |
Source: Fogo de Chão US Franchise LLC, 2022 filing, page 20
Fogo de Chão franchise fee
The franchise fee is $50,000, per restaurant, paid as a territory fee for each restaurant in the development schedule when the development agreement is signed. You pay it when you sign the franchise agreement.
Source: Fogo de Chão US Franchise LLC, 2022 filing, page 14
Royalty and ongoing fees
| Royalty | 5% of gross sales, paid monthly. |
|---|---|
| Brand or marketing fund | 1% of gross sales, paid monthly. |
| Local Advertising Requirement | 2.5% of Gross Sales |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Fogo de Chão US Franchise LLC, 2022 filing, page 14
Other fees as filed, from page 14. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Fogo de Chão publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Fogo de Chão US Franchise LLC, 2022 filing, page 43
- Estimate Estimated yearly sales per location
- $3.2M–$5.6M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Fogo de Chão compares
Of the 813 restaurant franchises on this site, Fogo de Chão is the 791st cheapest to open and the 221st largest by number of locations.
| Figure | Fogo de Chão | Typical restaurant brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $2.67M | $408K | $222K |
| Cost to open, high end | $6.72M | $866K | $477K |
| Franchise fee | $50K | $35K | $40K |
| Royalty | 5% | 5% | 6% |
| Brand fund | 1% | 2% | 2% |
| US locations | 48 | 14 | 21 |
| Shares earnings figures | Yes | 474 of 813 | 2,147 of 3,352 |
Typical is the median across the 813 brands in restaurant franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2019 | 0 (0) | 43 | 0 | 0 |
| 2020 | 0 (0) | 43 | 0 | 0 |
| 2021 | 0 (0) | 48 | 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: franchise failure rates.
Source: Fogo de Chão US Franchise LLC, 2022 filing, page 49
Who owns Fogo de Chão?
Fogo de Chão franchises are sold by Fogo de Chão US Franchise LLC. Its ultimate parent is Fogo de Chão, Inc.
From Fogo de Chão US Franchise LLC’s 2022 filing, page 6.
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: Fogo de Chão US Franchise LLC, 2022 filing, litigation on page 8, bankruptcy on page 8
Fogo de Chão filings
The figures on this page come from Fogo de Chão US Franchise LLC’s 2022 filing, issued April 14, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | April 14, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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