Fatburger charges a royalty fee of 6.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.

The total ongoing fee rate for a Fatburger franchise is approximately 9.0% of gross sales (2025 FDD). This includes the royalty fee, a 3.0% marketing/advertising fund contribution, a $70/month technology fee, and other recurring charges.

Fatburger has been involved in 5 litigation cases over the past 3 years (2025 FDD). There are currently 1 pending cases. There are no class action lawsuits pending.

No, the Fatburger franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

Fatburger offers protected territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales are managed by the franchisor, not individual franchisees.

Fatburger currently operates 177 locations (2025 FDD) (177 franchised, 0 company-owned). The system contracted by 4.8% over the past year. The 3-year compound annual growth rate is -4.5%.

The 1-year franchisee turnover rate for Fatburger is 15.1% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

According to the Fatburger FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $1.1M (average: $1.1M).

The initial franchise agreement term for Fatburger is 15 years (2025 FDD). Franchisees can renew 2 times for 10-year periods. The total potential term is 35 years.

Fatburger's post-termination non-compete clause restricts former franchisees from operating a competing business for 2 years within 5 miles of the former location (2025 FDD).

Yes, Fatburger's franchise agreement requires mandatory arbitration for dispute resolution (2025 FDD).

Fatburger provides 300 hours of initial training over approximately 6 weeks (2025 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a as-needed basis.

Yes, Fatburger provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.