Understanding the Costs of Running a Fatburger Franchise

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Starting a business as a franchise is one of the most popular avenues for entrepreneurs today. Fatburger is one of the world’s leading franchise operations, and for good reason. According to the latest statistics, the franchise industry is expected to exceed 0 billion in total production in 2021, an indication of its steady growth since the early 2000s.

Franchising is an ideal opportunity for the ambitious businessman; This means they can take advantage of an already successful brand, while avoiding many of the risks associated with building a business from scratch. However, starting a franchise also requires a degree of financial commitment; There is a range of expenses to consider including rent/lease, equipment, utilities, employee salaries, inventory/food costs, marketing/advertising, maintenance/repair, professional services and insurance.

In this blog post, we’ll look at the costs of running a Fatburger franchise and discuss how to plan your budget for a successful launch.

Operating Expenses

A business planning to become a Fatburger franchise should consider the following operating expenses.

  • Rent / rental
  • Equipment
  • Public services
  • Employee salaries
  • Cost of inventory / food
  • Advertising Marketing
  • Maintenance repair
  • Professional services
  • Assurance

Operating expenses can be a significant part of expenses for a Fatburger franchise. It is important to consider all operating costs when budgeting for a successful franchise.

Rent / rental

Opening a franchise for a popular restaurant like Fatburger requires significant costs. Rent and lease costs are the most common and significant costs when opening a franchise. The amount of rent/lease paid by the franchisee depends on the location, length of lease, amount of square footage and other local factors. According to the 2018 Franchise Disclosure Document, the average US rent and rental expense is 2,000 for the initial establishment of a Fatburger restaurant.

After the initial year, you must budget a rent/lease payment each month. The National Restaurant Association reports that the median monthly lease payment for fast food restaurants in 2018 was .45 per square foot , and paying rent annually is common.

For example, if the restaurant you select requires 2,500 square feet, you owe a rent/lease payment of ,625 per month , or 3,500 per year . It is important to have a realistic rental/lease budget that is based on local market trends and the size of restaurant space.

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When opening a Fatburger franchise, you may need to consider the cost of equipment. In the United States, the average price of equipment is around 5,779. This figure may include rent for food court space, furniture, refrigerators, stoves, fryers and other restaurant equipment. The equipment needed to open a Fatburger franchise can also vary depending on the size and location of the restaurant.

Before you sign the deal to start a Fatburger franchise, be sure to take inventory of what equipment you already have and what you need to buy. Additionally, you should factor in the cost of regular repair, maintenance, and replacement parts when estimating equipment costs.

New equipment may operate more efficiently, but you also need to consider the higher initial costs. Over time, as equipment breaks down, its performance and efficiency can decrease. This can have a negative impact on the quality of services, employee morale and customer satisfaction levels. To reduce long-term expenses and maximize profits, it is essential to invest in high-quality equipment from certified suppliers.

Public services

Operating a Fatburger franchise requires significant utility investment. According to the US Bureau of Labor Statistics (BLS), 2019, the average utility cost for food service establishments was ,120 per establishment. This cost is in addition to the rent, labor and supplies needed to operate the business.

When it comes to selecting utility providers, the main considerations are reliability and cost. You should research local energy providers and compare their services, offers and prices. The best way to save on utility costs is to reduce energy and water consumption within the business.

Here are some of the costs associated with utilities for a Fatburger franchise:

  • Electricity Costs: The largest component of utility expenses, electricity costs can range from 0 to ,000 or more per month, depending on the size of the restaurant.
  • Cost of Natural Gas: Depending on location, natural gas may be used for heating and/or cooking. Natural gas can cost up to 0/month.
  • Water and Sanitation Costs: Water and sanitation costs depend on local rates, but can range from 0-0+ per month.
  • Waste Removal: Local waste removal services typically charge a monthly fee, ranging from 0 to 0 per month, depending on the size of the restaurant.
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Along with regular monthly utility bills, you also need to budget for unexpected repairs and maintenance. If you invest in energy-efficient appliances and equipment, it can lead to significant savings over time.

Employee salaries

One of the main costs of operating a Fatburger franchise is the salaries paid to employees. According to the US Bureau of Labor Statistics (BLS), the median pay for fast food workers in the United States is .26 per hour . This median wage is lower than the federal minimum wage; However, this is because a large number of states have set their own minimum wage requirements above the federal limit. For example, according to the National Conference of State Legislatures (NCSL), the minimum wages for Alaska, California, and Washington are .89 per hour , .00 per hour , and .50 per hour respectively. . Because of these higher than federal salaries in these states, the median salary of a fast food worker in these states is also higher than the national median rate.

On the other hand, managers of a Fatburger franchise should expect to pay employees higher salaries due to the added responsibilities that come with the management role. According to the BLS, the median pay for a shift manager in the United States is approximately .86 per hour . Additionally, the median compensation for a restaurant general manager is ,390 per year . As with any other business, the company’s budget for employee salaries will depend on the size of the restaurant and the number of staff required to meet customer demand. Therefore, a successful Fatburger franchise will consider all of these factors when creating an appropriate payroll budget.

Cost of inventory / food

One of the fundamentals of running a Fatburger franchise or any franchise for that matter is understanding the financial costs. As such, it is essential to be aware of inventory and food costs for the franchise.

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If you are looking to open a Fatburger franchise, inventory and food costs will rely heavily on the size of the franchise and the location chosen. It’s important to note that inventory and food costs have remained consistent over the years, with the average cost of food per month generally remaining in the ,000-,000 range.

When budgeting for a catering business, inventory and food costs can make up a large portion of the budget. For a mid-sized Fatburger franchise, inventory and food costs tend to be around 25-32% of the total budget, which in 2019 was around 7,000-169,000. It’s important to be aware of your inventory costs early on, so you can plan expenses properly.

Over the years, inventory and feed costs have fluctuated slightly with changes in the industry, but for the most part prices remain relatively similar. Based on 2019 data, here are the latest statistical averages for inventory/food costs in a Fatburger franchise:

  • Meats: ,383/month
  • Products: 3/month
  • Dairy: 1/month
  • Frozen products: 3/month
  • Admittedly cleaning: 4/month

These costs are subject to change, depending on the size and location of the franchise, as well as the number of customers and promotional campaigns. Nonetheless, understanding and budgeting for inventory/food costs before opening your franchise can save you time and effort in the long run.

Advertising Marketing

Opening a Fatburger restaurant is a commitment that requires careful planning, a solid financial foundation, and financial stability. Besides the costs associated with building and supplying the restaurant, another major expense will come from marketing and advertising the Fatburger franchise. To ensure your restaurant succeeds, marketing and advertising are essential tools as they not only raise awareness of your restaurant but also increase customers. Recent statistics from 2019 show that the costs associated with marketing and advertising in the United States averaged billion .

As a franchisee, it’s important to develop a comprehensive plan that outlines your marketing and advertising strategies. This plan should include various tactics including traditional advertising like radio and TV ads, digital marketing Using various methods like fee-based marketing, email marketing, and social media marketing. Additionally, in order to generate more insights into the effectiveness of your marketing, measuring return on investment (ROI) is essential as it can help track its success. According to a recent 2020 survey, an average Fatburger franchisee can expect to spend -35,000 per year on marketing and advertising for their restaurant.

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Developing a good marketing and advertising plan is essential for the success of a Fatburger franchise. It is important to note that the costs associated with marketing and advertising vary greatly depending on geographic location; As such, it is important to do thorough research when creating your marketing and advertising plans. Here is a list of common activities you should consider when creating a marketing and advertising plan:

  • Develop website, blog and social media pages
  • Create promotional materials such as flyers, brochures and brochures
  • Create television and radio commercials
  • Develop special events and promotions
  • Use online advertising and pay-per-click campaigns
  • Conduct market research
  • Use email marketing campaigns
  • Regularly evaluate and measure the return on investment

By creating an effective marketing and advertising plan for your Fatburger franchise, you will help ensure that your restaurant succeeds. Not only will this help raise awareness and provide a platform for your restaurant, but it will also bring in more customers. As such, it is important to allocate a significant amount of your budget to this area.

Maintenance repair

For owners considering investing in a Fatburger franchise, understanding the average costs associated with maintenance/repair is an important first step. In the past, repair and maintenance expenses typically accounted for about 1.7% of total sales revenue. However, recent statistics show that the average expenditure related to maintenance/repair is increasing rapidly. Over the past year, the average Fatburger franchisee had to invest up to 3% of total sales revenue on maintenance/repair. Fortunately, this increase can largely be attributed to rising labor costs.

Including labor costs, the average maintenance/repair expense totals ,487 each year. The bulk of the expense is related to keeping kitchen equipment and furniture in order, with an average cost of ,502 per year per franchise. Other expenses that require regular maintenance include HVAC systems, computers, and other essential equipment, for an average total of ,985 . These expenses should be considered when budgeting for a Fatburger franchise.

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When it comes to maintaining your Fatburger franchise, prevention is often the most important tool. Keeping up with regular maintenance on equipment and furniture, while expensive, not only keeps the establishment looking its best and working well, but can help prevent costly and time-consuming repairs down the road. Additionally, staying up to date with the latest health and safety regulations is an essential part of owning any restaurant. Failure to do so can result in hefty fines and closed doors. Using an experienced and reliable maintenance/repair team can help keep your restaurant in top shape for years to come.

Professional services

Starting a Fatburger franchise business requires entrepreneurs to set aside a budget for professional services like payroll, insurance, accounting, and legal advice. In 2020, it costs an average of ,058 to start a Fatburger franchise, with professional services worth thousands of dollars. Here is a breakdown of the most common type of professional services for a Fatburger franchise.


Accounting services can provide businesses with setting up and managing their books, managing payroll, and filing their taxes. According to the 2020 Franchise Help survey, the approximate startup cost for accounting services for a Fatburger franchise is ,500.


Insurance is an important factor in the success of any business. It helps protect the business and its owners against potential losses associated with claims of accidents or negligence. According to Franchise Help’s 2020 survey, insurance costs for a Fatburger franchise cost an average of ,872.

Legal advice

Every business should be aware of local, state, and federal laws and regulations when starting a business or franchise. It is therefore important to seek advice from a lawyer to understand the legal obligations of running a Fatburger franchise. According to the Franchise Help 2020 survey, the approximate legal services for a Fatburger franchise are around 6.

payroll services

Payroll is one of the most important aspects of any business as it deals with human resources. It is important to hire a payroll specialist to ensure that payroll activities are processed correctly and taxes are paid on time. According to the Franchise Help 2020 survey, the cost of payroll services for a Fatburger franchise averages ,000.

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Owning a franchise requires you to be financially responsible and have insurance Protecting your business is no exception. The cost of insurance can vary greatly depending on the deductible, your location and the levels of coverage you choose. On average, franchise owners in the United States spend ,566 per year on insurance.

Owners of Fatburger franchises should plan to insure their business against natural disasters, personal injury, and property damage. The cost of coverage depends on the amount of protection you need, employees and customers, the overall value of your property, and the location of your deductible. Common types of insurance for a franchise owner include:

  • General liability insurance
  • Commercial auto insurance
  • Professional liability insurance
  • Home Insurance
  • workers compensation insurance
  • Product liability insurance

Having the right insurance coverage is essential, but the flexibility to change coverage at any time to accommodate business growth or changes throughout the year. Be sure to actively explore different types of coverage, as well as combinations of coverage, so you are fully prepared in the event of a claim.

It is important to be aware of the insurance costs associated with operating a Fatburger franchise and to build these expenses into your overall operating budget. However, having the right coverage can help provide protection and protect your business, so be sure to consider your options.


Launching a Fatburger franchise is a great opportunity for the budding entrepreneur. With its reliable brand, the potential to make a successful business is high. However, this potential must be backed up with a solid understanding of the operating costs involved; rent/lease, equipment, utilities, employee salaries, inventory/food costs, marketing/advertising, maintenance/repair, professional services and insurance.

It is essential to take into account all these costs to ensure a successful launch and long-term growth of your franchise. The key is to carefully plan your budget for each expense and remember that ultimately your success depends on those initial expenses.