Smashburger operates in the competitive better-burger segment with 194 total locations, but shows concerning system health trends. The franchise has experienced significant unit decline over recent years, dropping from 219 locations in 2022 to 194 in 2024. The investment ranges from $1.24M to $2.26M with a 5.5% royalty rate and 2.25% marketing fund contribution. The system is heavily company-owned (129 locations vs 65 franchised), suggesting challenges in franchisee attraction or retention. Key concerns include high unit closure rates (19 closures vs 6 openings in 2024), lack of financial performance data, and no territorial protection. The 15-year initial term and ability to renew once are standard for the industry.
Generated from 2025 Franchise Disclosure Document
AI-generated from FDD analysis — use as a checklist with your attorney
Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
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