The Flame Broiler
The total investment to open a The Flame Broiler franchise ranges from $411,000 to $715,000. The initial franchise fee is $35,000. Ongoing royalties are 5% plus a 3% advertising fee.
What is the The Flame Broiler franchise?
The Flame Broiler is a Korean inspired fast casual restaurant founded in 1995 by Young Lee in Fullerton, California. Lee immigrated from South Korea in 1972 and started the business with his wife, Sarah, to provide clean, wholesome meals. Its build your own bowl format offers grilled chicken, beef, or tofu over rice, fresh vegetables, and signature sauces. The concept avoids dairy, trans fats, and frying while emphasizing accessible, nutritious food and efficient operations. The brand began franchising in 1999 and operated over 125 units as of May 2024. Other sources report 158 United States locations, including 151 open franchises and 7 corporate units, more than 190 restaurants nationwide, or 135 or 137 stores. Locations are concentrated in the Western United States, especially California, with additional presence in Arizona, Florida, North Carolina, Oklahoma, Tennessee, Nevada, and Idaho. International franchise opportunities are not currently offered. The Limited Service Restaurants category is projected to increase from USD 737.31 billion in 2024 to USD 1214.93 billion by 2032, with a 5.71% CAGR from 2025 to 2035. This PeerSense analysis is intended to support investment review rather than serve as marketing copy.
The global Limited Service Restaurants industry is projected to reach USD 1214.93 billion by 2032, rising from USD 737.31 billion in 2024 at a 5.71% CAGR from 2025 to 2035. Demand is supported by convenience, speed, drive thru service, mobile ordering, and delivery, which is currently the largest segment. Interest in nutritious food also supports convenient dining concepts built around clean ingredients, no dairy, no trans fats, and no frying. Fast casual restaurants offer a more upscale experience than traditional fast food while retaining speed and affordability. Korean cuisine is gaining broader acceptance through the global Korean cultural wave. Healthy sales volumes were forecast through 2023, with positive growth expected through 2030. The sector remains fragmented, while The Flame Broiler focuses on Korean inspired, healthy, customizable meals. Urbanization, changing dietary preferences, mobile ordering, and artificial intelligence driven customer service create additional opportunities for adaptable brands.
The initial franchise fee is $35,000, although a 2020 source reported a fee of up to $25,000. Total initial investment is reported at $390,439 to $638,502, with other contemporary sources listing $411,000 to $715,000 or $411,278 to $714,774. A 2020 source reported $361,811 to $828,958. These amounts compare with fast casual subsector ranges of $406,514 to $894,151. A 2026 FDD estimate lists the $35,000 initial franchise fee, rent deposit and three months of rent at $10,535 to $48,000, leasehold improvements at $224,911 to $326,722, furniture, fixtures, and equipment at $42,605 to $52,943, initial inventory at $4,913 to $7,234, insurance at $6,262 to $14,175, training at $262 to $26,968, grand opening advertising at $2,000 to $4,133, signage at $4,633 to $11,807, office equipment and supplies at $1,158 to $2,952, professional fees, licenses, and permits at $10,918 to $46,000, software license, support, and related fees at $1,266 to $1,881, and additional funds for three months at $66,815 to $135,188. The estimated total is $411,278 to $714,774. Minimum liquid capital is $95,000, while the older source reported working capital of $62,980 to $125,000. Ongoing fees include a 5.00% royalty on gross sales and a 3.00% advertising fee on gross sales. The company remains family run, with Young and Sarah Lee's three sons involved in the business.
The operating model favors an active owner operator rather than a semi absentee approach. Franchisees are expected to manage daily operations and maintain service and food standards. The menu centers on grilled chicken, beef, or tofu with white or brown rice, fresh vegetables, and Magic Sauce. Its limited menu is intended to reduce operating complexity and staffing needs. The company reported that it did not lay off or furlough employees during the pandemic. Initial training lasts six weeks. The 2020 FDD described 480 hours, including 60 hours of classroom instruction and 420 hours of on the job training covering brand history, marketing, advertising, and food preparation. Ongoing assistance comes from the head office, the Restaurant Support Center leadership team, and a detailed operations manual. Gregg Rotcher became Vice President of Restaurant Operations in May 2024 and works with franchisees on business growth. Prime opportunities are available in Arizona, California, Florida, North Carolina, Oklahoma, and Tennessee. Franchisees must operate at a franchisor approved site and pay relocation costs. The 2020 FDD said territory protection was not offered, while an Area Development Agreement may now provide a defined Development Territory where new locations will not be established until the agreement ends or scheduled restaurants are developed.
Prospective franchisees should request financial information from the franchisor and speak with existing franchisees. The brand has an average customer rating of 4.15 across numerous reviews. Its industry is projected to have positive growth through 2030, including a 5.71% CAGR from 2025 to 2035. In May 2024, the company relaunched its franchise growth program after a five year pause focused on marketing, training, operational technology, and supply chain improvements. The relaunch included a multi unit development deal in the Dallas area, with the first Texas location expected to open in Prosper in late 2024. The simple, efficient, health focused model supports the brand's expansion plans. PeerSense assigns the franchise an independent Loan Activity Score of 51, categorized as Moderate.
The Flame Broiler was founded in 1995 and began franchising in 1999. As of May 2024, it operated over 125 units. Other reported figures include 158 United States locations, consisting of 151 franchised and 7 corporate units, more than 190 restaurants nationwide, and 181 franchised United States locations in the 2020 FDD. The company paused expansion for five years while improving marketing, training, operational technology, and supply chain systems. In May 2024, President Christian Lee relaunched the franchise growth program. The Dallas development deal marked entry into Texas, with the first Dallas area restaurant expected in Prosper in late 2024. In early 2024, Christian Lee became President after serving as Chief Operating Officer, and Daniel Lee moved from Chief Technology and Marketing Officer to Chief Innovation Officer. Their younger brother, David Lee, became Brand Coordinator. Gregg Rotcher became Vice President of Restaurant Operations in May 2024. The brand's advantages include clean ingredients, no dairy, no trans fats, no frying, a limited menu, Korean inspired food, and a strong Western United States presence. Its average customer rating is 4.15. Improvements made during the expansion pause and an updated visual identity using Korean roots support its market position. The company is seeking experienced multi unit operators in untapped Western markets and Sunbelt states such as Arizona and Texas. The Flame Broiler Foundation is planned for 2025 as a philanthropic arm focused on food equity. Since 2009, Young Lee has sponsored two children in need for every location.
The intended franchisee has restaurant experience, strong operating skills, and a willingness to manage the business directly. This is not a semi absentee model. The company seeks experienced multi unit operators for new communities, particularly in Western markets and Sunbelt states such as Arizona and Texas. Available states include Arizona, California, Florida, North Carolina, Oklahoma, and Tennessee. The first Texas location is planned for Prosper in late 2024. California's strong existing presence provides evidence of market viability. The six week training program offers a defined onboarding process, although the timeline from signing to opening is not stated. The franchise agreement term and renewal terms are not specified, and information about transfers and resales is unavailable.
The Flame Broiler operates in a Limited Service Restaurants market projected to grow at a 5.71% CAGR from USD 737.31 billion in 2024 to USD 1214.93 billion by 2032. Its Korean inspired build your own bowl format uses clean ingredients and excludes dairy, trans fats, and frying. The franchise program relaunched in May 2024 under second generation family leadership after a five year period focused on operational improvements. The brand has over 125 units across multiple states and plans expansion into Texas. The initial franchise fee is $35,000, total investment is $411,278 to $714,774, and the Loan Activity Score is 51, categorized as Moderate. PeerSense provides independent franchise research that may include SBA lending history, Loan Activity Score, location maps with Google ratings, FDD financial data, and side by side comparison tools. PeerSense introduces franchise buyers to SBA and conventional lenders but is not a lender.
Loan Activity Score
51/100
SBA Default Rate
5.0%
Active Lenders
13
According to its Franchise Disclosure Document or public business records, The Flame Broiler has 17 locations, all owned by franchisees. Public SBA loan records show 13 lenders made 20 loans to franchisees of The Flame Broiler. PeerSense calculates The Flame Broiler's score as 51 out of 100, using public SBA loan performance and recent lending activity.
Franchising since 1995 · 17 locations
$411,000 to $715,000
$35,000
17
17 franchised
Proprietary PeerSense metric
ModerateDistinct lenders in public SBA records for The Flame Broiler
20
Total SBA loans
$204K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for The Flame Broiler
Loan Activity Score Breakdown
Growing (10 to 24 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
5.0%
vs 10.3% peer avg
SBA Loans
20
Total Volume
$4.1M
Active Lenders
13
5 selective
States
3
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for The Flame Broiler based on SBA lending data
SBA Default Rate
5.0%
5.3% below peer avg
SBA Loan Volume
20 loans
Across 13 lenders
Lender Diversity
13 lenders
Avg 1.5 loans per lender
Investment Tier
Significant investment
$411,000 to $715,000 total
Payment Estimator
Estimated Monthly Payment
$4,255
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
The Flame Broiler, unit breakdown
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Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
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