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Updated RecentlyFatburger vs Smashburger Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Fatburger vs Smashburger including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $498,100 - $850,600 | $743,130 - $1,404,535 |
| Franchise Fee | $50,000 | $40,000 |
| Royalty Fee | 6% | 5 - 6% |
| Advertising Fee | 2% | 2% |
| Year Founded | 1952 | 2007 |
| Year Franchised | 1990 | 2008 |
| Term Of Agreement | 5 Year | - |
| Term Of Agreement | 5 Year | - |
| Renewal Fee | - | none |
Business Experience Requirements |
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| Experience | * Net Worth: $1,500,000.00 * Liquidity: $500,000.00 * For multi-unit deals, must meet all FCCR and capital requirements * Financial resources to support the business with debt/equity when necessary * Ability to develop additional restaurants (if required) * Excellent personal/professional and financial references * Clear credit and criminal background checks * Leadership standing in the community through participation with civic organizations * Understands the “business of running the business” * Sound business management skills * Mid-level entrepreneur spirit * Demonstrates leadership skills * Ability to manage and direct human resources under a proven system * Has an understanding of how to develop leadership skills on his/her team * Demonstrates a strong work ethic and a high level of integrity * Customer focused and responsive to customer needs * Possesses a strong decision-making ability * Effective communication skills * Ability to follow directions * Has a passion and enthusiasm for the business * Interested in working in a fast-paced and highly charged industry * Possesses a drive and desire to succeed | Smashburger (Smashburger Franchising LLC) is seeking multi-unit development partners domestically and internationally. To be considered, individuals or partnerships must meet the following minimum criteria: *Demonstrated enthusiasm, drive, and passion and a proven record of success in the restaurant industry *Five years multi-unit restaurant management experience as an owner and/or operator *Experience operating a minimum business of 10 or more units *Minimum financial net worth of $2 million and liquidity of $500,000 *Typical development agreement commitment of 5-20 units *Operating, real estate and trade area experience in development territory *Dedicated support team for Smashburger *Ability to obtain a liquor license (where applicable) |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | -/- | -/- |
| Start-up Costs | -/- | -/- |
| Equipment | -/- | -/- |
| Inventory | -/- | -/- |
| Receivables | -/- | -/- |
| Payroll | -/- | -/- |
Training & Support |
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| Training | -Proper training is absolutely essential for maintaining a successful operation while maintaining the consistency and integrity of the Fatburger operation and brand. To that end, Fatburger sets rigorous standards for staff development.
-Fatburger provides its franchisees with a detailed and comprehensive curriculum outlining how to operate their Fatburger business. Franchisees will receive thorough instructions in:
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| Support | When franchisees join the Fatburger family, they receive the support provided by an organization committed to their success. Fatburger franchisees will also benefit from the experience of a professional management team. Fatburger has developed an effective, systematic process to get our franchisees up and running quickly. That includes architecture and design support, operational support, purchasing support, equipment selection support, training and recruitment support, advertising and marketing support, and real estate support. | Real Estate and Site Selection Lease Approval Pre-opening Management Training Vendors and Equipment Store Opening Support Information Technology Marketing and Public Relations Operations Support Purchasing and Distribution |
| Marketing | -No business can be successful without creative advertising and an intelligent marketing plan. To continually attract a diverse customer base, Fatburger advertising must react faster, be more daring, more innovative, and more focused on the specific community in which each location is situated. Fatburger's past experience has shown this is the only proven method to stay ahead of the competition. -Fatburger's flair for creative advertising and marketing sets us apart from other restaurants. The distinctive history, the L.A. roots, the world famous cooked-to-order burger, and the look and sound of the restaurants, all provide great opportunities for innovative marketing. | - |
| Operations | - | - |
Expansion Plans |
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| US Expansion | - | - |
| Canada Expansion | - | - |
| International Expansion | - | - |
Company Overviews
About Fatburger
The now famous Fatburger Restaurant had humble beginnings many years ago in the spotless kitchen of Ms. Lovie Yancey. Her guests enjoyed her hamburgers so much that she was encouraged to share her unique recipe with the world. Ms. Yancey took their advice and opened her first restaurant in Los Angeles, in 1952. She called this restaurant "Fatburger," while her loyal customers called it, "The Last Great Hamburger Stand." Now, over 60 years later, the red and yellow sign still holds the same promise. A promise to serve customers a great hamburger prepared fresh daily at every location. Customers will never find a frozen or prefabricated Fatburger in our restaurants.
At Fatburger, we are proud to say that word of mouth has filled our restaurants for over 60 years. Demographically, our appeal is limitless. Our customers come from every walk of life, mirroring the diversity of every community in which we are located. Teenagers, families with young children, singles, senior citizens, and people from all income levels, and ethnic backgrounds love a great burger. They tell their friends and associates about the superb homemade taste, spotless surroundings, friendly atmosphere and courteous service that they experience at Fatburger Restaurants
About Smashburger
Spread the Burger Love and Become a Smashburger Franchisee Today
Smashburger franchisees are proven multi-unit operators, leaders in the industry whose energy, passion and entrepreneurial spirit fuel an eagerness to feed hungry burger lovers.
To be every city's favorite burger place, Smashburger chooses only the best people to be Smashburger franchisees. Our franchise partners are committed to setting a new standard of guest experience. From the taste of the food, to the speed and accuracy of the order, the power of our people to make decisions, the friendly face at the counter and the cleanliness of the restaurant, our Smashburger franchise partners proudly strive to deliver a great guest experience in every restaurant, every time.
Together the Smashburger corporate team and the Smashburger franchisees will quickly make Smashburger every city's favorite burger place.
The Smashburger corporate team is dedicated to ensuring the success of the Smashburger franchisees so Smashburger can become every city's favorite burger place. The Smashburger corporate team has a variety of backgrounds, including operations, real estate, marketing, public relations, human resources, purchasing and information technology. The Smashburger team specializes in helping Smashburger franchisees during pre-opening, grand opening and provides on-going support.
Smashburger succeeds if our franchisees succeed, and we are committed to your success!
The Smashburger team will provide you with the systems, resources and support you need to operate your business successfully.
The total investment necessary to begin operation of a Smashburger
Restaurant is estimated to be $743,130 to $1,404,535. This includes
$41,500 to $71,500 that must be paid to franchisor or its affiliates. If
we grant you area development rights, the total investment necessary to
acquire these rights is estimated to be $20,000 to $480,000 (based on a standard 2 to
25 restaurant development deal, determined by multiplying $20,000 by the
total number of restaurants you agree to develop, less one), all of
which must be paid to franchisor or its affiliates.