Smashburger Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$40,000
Investment required
$1,332,000 - $2,354,000
Royalty fee
5.50%

Smashburger: Leading the Way in Fast-Casual Burger Innovation

Smashburger has become a standout name in the fast-casual dining scene, known for transforming the burger experience. Launched in Denver in June 2007, this brand quickly made a mark by delivering top-tier, made-to-order burgers that appeal to burger enthusiasts.

Their distinctive method, using certified Angus beef and a unique smashing technique, guarantees that every burger is bursting with flavor and juiciness, distinguishing Smashburger from typical fast-food options.

Based in Denver, Colorado, Smashburger began franchising in 2008, just a year after it was founded. This strategic initiative aimed to broaden its reach, allowing more people to enjoy its exceptional burger experience.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Fees $40,000
Leasehold Improvements $900,000 - $1,382,610
Furniture, Fixtures and Equipment $269,000 - $371,413
Signage $9,000 - $41,756
IT, POS System $27,000 - $51,126
Three Month’s Rent $26,000 - $53,581
Security Deposit, Business Licenses $1,560 - $11,000
Opening Inventory and Supplies $15,000 – $20,000
Grand Opening Advertising $10,000
Training Expenses $6,000 - $274,780
Grand Opening Assistance $0 - $30,000
Miscellaneous Opening Costs $1,000 - $5,000
Professional Fees $5,000 – $15,000
Insurance Premiums – 3 Months $10,000 – $20,000
Liquor Licensing $1,000 - $6,618
Lease Review Fee $1,500
Additional Funds - 3 months $10,000 – $20,000
TOTAL ESTIMATED INITIAL INVESTMENT $1,332,060 - $2,354,384

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Number of units

2023
Franchised units

98

91

85

Company-owned units

115

128

134

Total units

213

219

219

Franchise Disclosure Document

Training 

The franchisor offers an extensive training program for franchisees, encompassing various critical aspects of business operations. The training includes:

Orientation/Training Overview

This initial session consists of 5 hours of classroom instruction, providing a comprehensive introduction to the franchise system and outlining key expectations.

Back of House Functional Training

Concentrating on kitchen operations, this segment involves 42 hours of hands-on training. Franchisees will gain the necessary skills to efficiently manage back-of-house activities.

Front of House Functional Training

Similar to the Back of House training, this segment also includes 42 hours of practical training, focusing on customer service and front-end operations.

The training is held either at a designated facility by the franchisor or virtually, based on the circumstances. This program is designed to thoroughly prepare franchisees for running their Smashburger restaurant, covering both managerial and operational aspects of the business.

Territory Protection

The Smashburger Franchise Disclosure Document details the conditions under which franchisees may receive territorial protection. Specifically:

Protected Territory

A franchisee's Development Area can be designated as "protected," ensuring that during the term of the Multi-Unit Development Agreement, the franchisor will not establish or allow others to establish Smashburger Restaurants within that area.

Exceptions and Conditions

This territorial protection is subject to certain exceptions and conditions. The franchisor reserves the right to engage in other business activities without considering the franchisee's territorial protections.

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