Fatburger Franchise
Often referred to as "The Last Great Hamburger Stand," Fatburger is a favored chain that has lived up to its commitment to serve fresh burgers daily.
$500,000
$50,000
88
1990
Beverly Hills,CA
Andy Wiederhorn
About Fatburger
What sets Fatburger apart from other burger joints, and what has driven its continued success over the past 60 years, is its commitment to serving 100% pure lean beef burgers, grilled fresh right in front of the customers. Customers have the choice of patty size, which is not something that most restaurants offer, as well as a choice between a vast selection of toppings. The ability to build one's own burger to one's satisfaction is why the burger joint doesn't have just "customers" – it has a following. In addition to custom burgers, fans also visit the joint for its fresh cut onion rings and creamy shakes made of hand-scooped ice-cream.
Franchise Unit Trends & Revenue
88
11
$1,144,270
* in 2024
Franchise Fees
$50,000
6.0%
Net Sales
3.0%
Net Sales
Why Choose Fatburger?
There are several benefits of owning a Fatburger franchise, the greatest of which is its reputation for making gourmet burgers for an affordable price. Fatburger is one of those restaurants that thrives off of word of mouth. Customers come from all walks of life and mirror the diversity of each separate community. Patrons are teenagers, singles, senior citizens and families with young children. Everyone leaves happy and therefore, goes on to tell friends and family members about the great food and family-friendly environment offered by Fatburger. The chain's reputation does half the marketing work for franchise owners.
Another benefit of franchising a Fatburger is that, because burgers are universal, the available markets are plentiful. Fatburger is looking to expand its reach and is looking for single-unit and multi-unit owners. The franchise also allows franchisees the freedom to co-brand with Buffalo's Café, thereby providing owners with more opportunity for growth and sales.
Yet another benefit of franchising a Fatburger is the fact that the venues are flexible. One can purchase a traditional, drive-thru restaurant that seats up to 50, a full-service dine-in restaurant that seats up to 150, a kiosk in a food court or a co-branded joint. One can also choose whether to offer delivery, bar service and a drive thru where available. The chain even offers franchisees the option of offering Halal and Kosher menu items, depending on the market.
The company offers initial and ongoing support both of the monetary and training variety. It also offers architectural and design support for those who wish to build a new location rather than buy an existing one. Fatburger's marketing team is also exceptional, as it has had to be to flourish in the saturated L.A. market.
Starting Costs & Investment Requirements
$500,000 - $988,000
$1,500,000
$500,000
History
Though Fatburger didn't become "Fatburger" until 1952, the founder began making and selling burgers under the name of Mr. Fatburger in 1947. Ms. Lovie Yancey and her boyfriend, Charles Simpson, owned and operated a hamburger stand — which was actually more of a shack made of leftover materials and featured only three barstools for dining — in Los Angeles. The burgers were such a huge hit that the duo went on to open three more stores in the L.A. area. Eventually, as many business relationships go, Simpson and Yancey parted ways. Simpson kept the name "Mr. Fatburger," while Yancey dropped the Mr. and continued her side of the business under the name Fatburger. At the time, she dreamed of expanding beyond the L.A. area, which she did in the early 1970s.
In 1973, Yancey opened her first Beverly Hills branch. In 1981, she began to franchise the restaurant, and by 1985, the chain had over 30 operating units. Despite the growing prevalence of places like McDonald's, Wendy's and Burger King, Fatburger prevailed, which Yancey believes is because "a good hamburger sells itself," and because she didn't believe anybody could make a hamburger as good as Fatburger does.
Fatburger continued to expand aggressively in the 1990s, extending its reach beyond the California market. Las Vegas saw the first two non-California restaurants. Today, the chain operates more than 200 units throughout the United States and 25 other countries.
Ideal Candidate
Fatburger is not just any burger joint and as such, it is not looking to franchise just anyone. The right candidates will have a net worth of $1,500,000 and liquid assets that value at least $500,000. They will also have the ability to develop additional restaurants if required to do so and possess excellent personal and professional financial references, clear credit and criminal background checks and strong leadership skills and the experience to back them.
Finances aside, Fatburger is looking to franchise to individuals who have an entrepreneurial spirit, sound business management skills, a keen understanding of what it takes to run a business, an understanding of how to motivate and develop leadership qualities in others, effective communication skills and strong-decision making capabilities. Finally, the right people have a passion for the business, are interested in working in a fast-paced, busy environment and a desire and drive to succeed.
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