Fatburger

Fatburger, known by the trademarked identity "The Last Great Hamburger Stand," traces its history to 1947, when Lovie Yancey founded the concept in Los Angeles, California’s Exposition Park neighborhood with partner Charles Simpson under the name "Mr. Fatburger." Yancey bought out her partners in 1952 and removed "Mr." from the name. Fatburger now operates as a subsidiary of FAT Brands Inc., a Beverly Hills, California headquartered global restaurant franchisor whose name stands for Fresh, Authentic, Tasty. As of December 29, 2024, FAT Brands had approximately 2,300 locations across more than 40 countries and 49 U.S. states. Fatburger had surpassed 200 locations across 20 countries by January 2024, including more than 80 in the United States. Fatburger Canada marked its 20th anniversary in 2025 and had more than 70 Canadian locations as of April 2025. That history and scale give buyers a substantial brand platform to examine alongside the risks of committing significant capital to a restaurant franchise.

Better burger concepts have been actively franchised over the past decade as consumers accept a modest premium for customizable, higher quality burgers. The shift from full service dining toward value oriented quick meals, along with delivery, mobile ordering, and millennial and Gen Z preferences for origin stories and customization, supports the category. Fatburger’s Los Angeles heritage and made to order positioning fit those preferences. National competition is moderately consolidated, while regional and local markets remain fragmented. Airports, university campuses, and corporate dining facilities are growing limited service venues, and Fatburger’s opening in the American Airlines employee dining hall at Dallas Fort Worth International Airport reflects that direction. Population growth in Sunbelt markets, expanding delivery infrastructure, and interest in brand authenticity also affect the opportunity.

The initial Fatburger franchise fee is $50,000. A U.S. location generally requires approximately $508,600 to $1,694,900, while some FDD versions report $517,300 to $2,656,900 when liquor licensing and premium market construction are included. Fatburger Canada reports typical total capital of $450,000 to $750,000, with food court locations potentially below that range. Leasehold improvements and construction cost $150,000 to $600,000, while equipment, decor, and furnishings add $160,000 to $600,000. Signage costs $10,000 to $100,000, point of sale and technology systems cost $16,100 to $38,000, and training costs $32,500 to $65,000. Three months of working capital is budgeted at $25,000 to $40,000. Where applicable, liquor licensing costs $5,000 to $75,000. U.S. franchisees contribute 4.00% to the national advertising fund, and Canadian franchisees pay a 3% marketing fee divided between 2% for the national fund and 1% for local community marketing. U.S. candidates should plan for minimum liquid capital of $210,000, with ideal candidates holding $200,000 to $400,000 in cash. Canadian franchisees require cash equity of $250,000 to $350,000.

Fatburger uses a made to order burger model with a customizable menu intended to support dining room and off premises sales. Formats include free standing drive through restaurants, end cap strip center sites, inline mall or street level locations, airports, and institutional dining facilities. Staffing generally includes a general manager, shift supervisors, and line crew. The made to order process requires consistent kitchen execution. Initial training covers restaurant operations, food preparation, customer service, and financial management, with costs of $32,500 to $65,000 included in the investment. Continuing support includes field consultant visits, corporate operations resources, and local and national marketing programs. In Canada, the real estate department conducts site analysis and secures locations. FAT Brands’ presence across 49 U.S. states and more than 40 countries supports supplier pricing that smaller independent operators may not receive. A Protected Territory prevents another traditional Fatburger restaurant from opening or being authorized there, but the company can still distribute products through delivery platforms, catering, and online sales. Multi unit development agreements are available in underserved markets, with net worth requirements reviewed individually.

Fatburger grew from 182 locations in 2021 to more than 200 across 20 countries by January 2024, or roughly 10 net new locations annually at the system level. In fiscal year 2024, FAT Brands opened 92 restaurants across its portfolio, signed more than 250 franchise agreements, and built a pipeline targeting 1,000 locations. Its first quarter of 2025 produced 23 openings, a 37% year over year increase, with more than 100 additional openings planned for the rest of 2025. In July 2025, existing franchisee Whole Factor Inc. agreed to open 40 Fatburger locations across Florida over 10 years, including Jacksonville. That agreement followed a 14 unit deal signed in 2021 for Orlando and Tampa, where restaurants have opened in Riverview and Celebration. Another agreement covers 40 new locations in Northern California, often co branded with Round Table Pizza. A 30 store franchise agreement adds France to the European market. Taylor Wiederhorn became Co CEO and Chief Development Officer of FAT Brands in 2025, alongside Chairman Andrew Wiederhorn. The brand’s positioning combines its 1947 origin, Los Angeles identity, FAT Brands’ supplier network, and growth in airports and institutional dining.

The target franchisee generally has business ownership or management experience, enough capital to operate without excessive debt, and an interest in the demands of a made to order restaurant. Food service, retail management, and multi unit business experience can help, although the training program also supports candidates from adjacent industries. U.S. candidates are generally expected to have $200,000 to $400,000 in liquid capital to manage working capital needs during the first six to twelve months. Multi unit opportunities are available in underserved domestic and international markets, and FAT Brands has a pipeline of more than 1,000 committed locations. Current expansion includes 40 Florida locations, 40 co branded Northern California locations, and Canadian openings in Edmonton, Nanaimo, Saskatoon, and Kamloops. Barrie, Ontario was planned for late April or May 2025. Airports, corporate dining halls, and institutional facilities may suit investors with commercial real estate relationships in those areas. Opening timing depends on the format and market, with conversion and food court sites generally opening faster than ground up free standing restaurants.

Fatburger offers a 77 year operating history, more than 200 global locations, a $50,000 franchise fee, and support from FAT Brands’ 2,300 location system. The PeerSense Loan Activity Score of 61 is a Moderate franchise performance indicator. Development activity includes 40 Florida locations, 40 Northern California locations, 30 France locations, and 92 FAT Brands openings in fiscal 2024. PeerSense provides franchise research that includes SBA lending history, Loan Activity Scores, location maps with Google ratings, FDD financial information, and comparison tools for evaluating Fatburger against other limited service restaurant concepts.