Flame Broiler (The)

The Flame Broiler (The) is a Korean inspired fast casual rice bowl concept founded in 1995 by Young Lee and his wife, Sarah Lee. Its origins trace to a Southern California home kitchen, where Sarah Lee created the signature “Simply Magic® Sauce” recipe in 1994, one year before the first store opened in Fullerton, California. The menu centers on rice bowls with grilled meats or tofu, fresh vegetables, and proprietary sauces. It excludes trans fats, dairy, and fryers. The company began franchising in 1999 and reached 190 United States locations in 2017. Today, it operates approximately 158 to 165 locations across eight states, including 151 franchised units and 7 corporate locations, all in the United States. Its headquarters are in Santa Ana, California. The business remains family owned and family led, with Young Lee as CEO, Christian Lee as President and Chief Operating Officer, and Daniel Lee as Chief Innovation Officer and Chief Marketing and Technology Officer. PeerSense research analysts prepared this analysis independently, without promotional considerations from the franchisor.

The limited service restaurant market was valued at approximately $823.96 billion globally in 2024 and is projected to reach $871.02 billion in 2025, $1.21 trillion by 2032, and $1.44 trillion by 2034. The market is projected to grow at a compound annual rate of approximately 5.71% through 2035. In the United States, limited service restaurants represented 36.3% of the Food Away from Home market in 2024. The Flame Broiler concept aligns with rising demand for health conscious, customizable meals with accessible pricing and with growing interest in Korean inspired cuisine. Fast casual dining is gaining ground as consumers move from traditional fast food toward higher quality meals while spending less than they would at casual dining restaurants. Mobile ordering, delivery platforms, and artificial intelligence customer service are also changing customer engagement. The company used its five year pause before relaunching franchising in 2024 to strengthen operational technology and marketing infrastructure. Regional competition remains fragmented, creating opportunities in markets where the brand has limited coverage.

The initial franchise fee is $35,000, confirmed in 2025 and 2026 data, compared with older disclosure figures of $25,000. Total initial investment ranges from approximately $411,278 to $714,774 based on 2026 FDD data. Other sources report $390,439 to $638,502 for different reporting periods. Leasehold improvements account for $224,911 to $326,722. Furniture, fixtures, and equipment cost $42,605 to $52,943. Professional fees, licenses, and permits range from $10,918 to $46,000. Three months of additional working capital ranges from $66,815 to $135,188. Rent deposits and three months of prepaid rent add $10,535 to $48,000, while grand opening advertising requires $2,000 to $4,133. Ongoing fees include a 5% royalty on gross sales and a 3% national brand fund contribution, totaling 8% of gross sales. Training costs range from $262 to $26,968. Annual insurance costs are projected at $6,262 to $14,175, and technology, software licensing, and related support fees range from $1,266 to $1,881. The franchisor does not provide direct financing support. Third party financing platforms can connect prospective franchisees with lenders, and buyers should assess SBA loan eligibility based on the brand’s operating history since 1995.

The operating model is designed for active owner operators rather than semi absentee ownership. Franchisees are expected to participate in all aspects of daily operations. The company seeks candidates with restaurant experience, operational knowledge, and a personal commitment to what it calls “fanatical excellence” in guest service. The menu supports a lean staffing model by excluding fryers, dairy based ingredients, and trans fat containing products. Current training totals 480 hours, including 60 hours of classroom training and 420 hours of on the job training. New franchisees begin with a two week immersion at the corporate headquarters. Continuing support includes operational manuals, a resource library, computer and technology assistance, and field consultation from the Restaurant Support Center leadership team. Gregg Rotcher became Vice President of Restaurant Operations in May 2024 after serving as Director of Operations beginning in 2021. The company does not offer territory protections. It has added a Director of People and Culture role and describes its workplace approach as a “people first culture.” The company also states that it did not lay off or furlough employees during the pandemic. Multi unit development is being pursued, including through the 2024 Texas expansion agreement.

Prospective investors should request financial information from existing franchisees. The broader fast casual rice bowl and Korean inspired segment has no single consolidated benchmark, while the limited service restaurant industry is projected to grow at 5.71% through 2035. During the five year franchising hiatus, the company acquired 13 locations from existing franchisees. That activity may indicate operational challenges at certain units, or it may reflect aging franchisees exiting and market specific circumstances. Buyers should review FDD Item 20 for turnover, terminations, and transfers.

The system reached 190 United States locations in 2017, then declined to 181 franchised locations in the 2020 FDD and approximately 165 locations by April 2024. The reduction reflects the acquisition of 13 franchise locations during the hiatus and ordinary system attrition. In May 2024, the company relaunched franchising after a five year pause used to improve marketing infrastructure, training systems, operational technology, and supply chain capabilities. A multi unit development agreement for the Dallas, Texas metropolitan area marked the brand’s first entry into Texas. The agreement targets three North Texas locations, with the first expected to open in Prosper in late 2024. The brand operates in California, Arizona, Nevada, Idaho, Florida, North Carolina, Oklahoma, and Tennessee. Its California concentration leaves room in other markets, including growing Sunbelt areas. Christian Lee became president, while Daniel Lee assumed the combined Chief Innovation Officer and Chief Marketing and Technology Officer role, supporting a generational transition. The Flame Broiler Foundation was formally established in 2025 as the philanthropic arm focused on food equity and community health. Young Lee pledged in 2009 to sponsor two children in need for every new location opened. Brand assets include the proprietary sauce recipe, clean menu positioning, nearly three decades of Southern California brand equity, and a format without frying equipment.

The target franchisee is a hands on operator with restaurant or food service management experience, enough capital for the full investment range of $411,278 to $714,774, and a willingness to participate in daily operations. The franchisee base has historically included a high proportion of first generation immigrant entrepreneurs, and the company has stated that it supports this community with relevant training and operational resources. Multi unit development is the preferred growth model, as shown by the Texas expansion agreement. Candidates with the financial resources and management systems to operate several locations may receive priority in the current recruitment cycle. New development is focused on untapped Western United States markets, where the brand’s California heritage may provide awareness, and on Sunbelt states such as Texas and Arizona. Opening time will depend on site selection, permitting, and build out. Leasehold improvements of $224,911 to $326,722 indicate a custom build out model rather than a light conversion format. The absence of territory protection should be evaluated carefully, especially in densely populated California markets where the existing footprint is strongest.

The brand has also refreshed its franchise infrastructure after a five year strategic pause. Its 8% total ongoing fee load, menu without frying equipment, and family owned leadership structure with generational succession are relevant factors for buyers comparing fast casual concepts. The lack of territory protection is another risk factor to model in a market review. PeerSense is a commercial capital advisory firm that introduces franchise buyers to SBA and conventional lenders. It does not lend, fund, or approve loans. Its research resources include SBA lending history, the Loan Activity Score, location maps with Google ratings, FDD financial data, and comparison tools.