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NET WORTH REQUIREMENTS
Fatburger requires a minimum net worth of $1,250,000 (excluding automobiles, furnishings and personal residences), with a minimum of $750,000 in liquid assets. Liquid assets are defined as those which can be converted to cash within thirty (30) days.
The cost of establishing a Fatburger restaurant will vary according to the size of the facility, relative land issues and the extent of necessary leasehold improvements. Twenty-five percent of the total cost must be funded from personal resources. The remainder may be funded through traditional financial institutions or our approved lending sources.
FRANCHISE TERRITORY OPPORTUNITY
Qualified individuals can now multiply their opportunity by owning a mini-chain of Fatburger restaurants in a specified area. Minimum net worth requirements of the area franchise developer will be reviewed on an individual basis. The franchise developer will have to demonstrate that he/she possesses the financial strength and organization to maximize the development of the territory.
THE FRANCHISE FEE
The franchise fee for each Fatburger restaurant is $40,000.
START-UP COSTS
Your initial investment will vary based on the size of the restaurant and local conditions. The estimated investment range for a new Fatburger restaurant is:
Low High
Franchise Fee $40,000 $40,000
Leasehold Improvements $125,000 $250,000
Furniture, Fixtures, Equipment,
Signs, Small Wares and Inventory $129,000 $277,000
Deposits, Opening Expenses, Working Capital, Training, and Miscellaneous. $67,000 $118,000
Total $361,000 $685,500
FRANCHISE ROYALTY
Franchises pay a royalty fee equal to 6% of the net sales of their Fatburger restaurant for continuing services. These ongoing services include continued use of the Fatburger name and trademark, operational support, marketing assistance, training programs, and other benefits of being a Fatburger franchisee.
ADVERTISING FEE
Each Fatburger restaurant (franchise-owned and company-owned) contributes 2% of net sales to the national/regional advertising fund. This fund is used to build recognition and acceptance of the Fatburger name and recognition. This is intended to benefit everyone who is a part of the Fatburger team. All restaurants also spend at least 2% of net sales on local marketing.
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