Nathan's Famous charges a royalty fee of 5.5% 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 Nathan's Famous franchise is approximately 8.0% of gross sales (2025 FDD). This includes the royalty fee, a 2.5% marketing/advertising fund contribution, and other recurring charges.

Nathan's Famous has been involved in 0 litigation cases over the past 3 years (2025 FDD). There are no class action lawsuits pending.

No, the Nathan's Famous franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

Nathan's Famous offers non-exclusive territory rights to its franchisees (2025 FDD). The franchise agreement does not include encroachment protection. Online sales are managed by the franchisor, not individual franchisees.

Nathan's Famous currently operates 75 locations (2025 FDD) (71 franchised, 4 company-owned). The system grew by 0.0% over the past year. The 3-year compound annual growth rate is -0.4%.

The 1-year franchisee turnover rate for Nathan's Famous is 6.7% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

Nathan's Famous does not include an Item 19 financial performance representation in their FDD (2025 FDD). This means the franchisor has chosen not to disclose revenue, profit, or other financial figures in the Franchise Disclosure Document.

The initial franchise agreement term for Nathan's Famous is 10 years (2025 FDD). Franchisees can renew 1 time for 5-year periods. The total potential term is 15 years.

Nathan's Famous's post-termination non-compete clause restricts former franchisees from operating a competing business for 2 years within 3 miles of the former location (2025 FDD).

No, Nathan's Famous's franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation.

Nathan's Famous provides 70 hours of initial training over approximately 3 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, Nathan's Famous provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.