Nathan's Famous vs Red Robin Gourmet Burgers Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Nathan's Famous vs Red Robin Gourmet Burgers including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
Investment |
$43,000 - $1,071,360 | $1,865,000 - $4,115,000 |
Franchise Fee |
$30,000 | $35,000 |
Royalty Fee |
5.5% | 4% |
Advertising Fee |
2% | - |
Year Founded |
1916 | 1969 |
Year Franchised |
1988 | 0 |
Term Of Agreement |
20 years | - |
Term Of Agreement |
20 years | - |
Renewal Fee |
50% of franchise fee | - |
Business Experience Requirements |
Experience |
Industry experience General business experience | - |
Financing Options |
|
In-House/3rd Party | In-House/3rd Party |
Franchise Fees |
Yes/No | -/- |
Start-up Costs |
No/No | -/- |
Equipment |
Yes/No | -/- |
Inventory |
Yes/No | -/- |
Receivables |
No/No | -/- |
Payroll |
No/No | -/- |
Training & Support |
Training |
- | - |
Support |
Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations | - |
Marketing |
Co-op advertising | - |
Operations |
60% of all franchisees own more than one unit Number of employees needed to run franchised unit: 14
Absentee ownership of franchise is allowed. (65% of current franchisees are owner/operators) | - |
Expansion Plans |
US Expansion |
- | No |
Canada Expansion |
No | No |
International Expansion |
Yes | No |
Company Overviews
About Nathan's Famous
Franchising is a business concept that allows qualified investors to become part of an established, existing “system.” A good way to look at franchising is, you’re in business for yourself, but not by yourself. Strategically, this provides many benefits under a brand name that has consumer awareness and equity.
Nathan’s has taken this basic premise and redefined it to exceed the most stringent business criteria of today’s investor.
Nathan’s offers a wide range of restaurant designs and customized equipment, thereby offering business opportunities to qualified candidates regardless of space constraints or investment limitations.
The estimated initial investment for a BMP Operation ranges from
$43,000 to $86,300, including an initial license fee of $7,500. If you
want to add an “Arthur Treacher’s” BMP Operation to your new or existing
food service establishment, the additional estimated initial investment
will be from $34,404 to $81,486, including an initial license fee of
$7,500.
#78 in Gator's Top franchises
#286 in Franchise 500 for 2020.
About Red Robin Gourmet Burgers
Red Robin Gourmet Burgers was founded in 1969. It is a casual dining restaurant chain that serves up wholesome, fun, feel-good experiences in a family-friendly environment. Red Robin restaurants are famous for serving more than 22 high-quality gourmet burgers in a variety of recipes with Bottomless Steak Fries, as well as salads, soups, appetizers, entrees, desserts, and signature Mad Mixology Beverages. There are more than 360 Red Robin restaurants located across the United States and Canada, which include both corporate-owned locations and those operating under franchise or license agreements.
The initial franchise fee is $35,000. The total investment necessary
to begin operation of a RED ROBIN® RESTAURANT ranges from $2,220,000 to
$4,115,000 for a freestanding prototype building, or $1,865,000 to
$3,635,000 for a standard-size, in-line space prototype or for a
mid-size, in-line space prototype.
These ranges include the initial
franchise fee of $35,000 that you must pay to the franchisor but does
not include the cost of buying, building or renting the restaurant
location and the cost to obtain a liquor license.