The Counter Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$25,000 - $35,000
Investment required
$711,000 - $1,984,000
Royalty fee
6.00%

The Counter: Revolutionizing the Burger Experience with Endless Customization

The Counter, established in 2003, revolutionized the burger industry with its premium offerings and unique approach to the traditional burger restaurant. The inaugural location in Santa Monica set the stage for the brand's expansion to multiple locations.

What sets The Counter apart is its highly customizable menu, offering guests the choice of a wide array of proteins, cheeses, toppings, sauces, and buns, resulting in over a million possible burger combinations. This innovative concept is delivered in a full-service, casual dining atmosphere, characterized by industrial décor and lively music.

In 2005, just two years after its founding, The Counter began franchising, introducing its distinctive dining experience to new markets. This strategic expansion underscores The Counter's dedication to reinventing the classic American burger, using high-quality, locally sourced ingredients to craft unique, flavorful options within a hospitality-focused environment. The Counter's Headquartered is in Culver City, California.

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.

The Counter offers 2 types of franchises:

Type of The Counter Restaurant Initial Investment
Traditional $724,133 to $1,983,750
Non-Traditional $711,133 to $1,968,750

We are summarizing below the main costs associated with opening a traditional The Counter restaurant franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Traditional The Counter Restaurant franchise

Type of Expenditure Amount (Low) Amount (High)
Initial Franchise Fee for Traditional Location $28,000 $35,000
Initial Training Program expenses, including travel, room and board $12,500 $50,000
Lease Payments for Franchise Location Premises for First Three Months Plus Lease Security Deposit $23,333 $70,000
Professional Design Fees (Architect, Engineer, Kitchen Designer) $10,000 $17,000
Construction Costs and Leasehold Improvements $280,000 $515,000
Utility Hook Up and Impact Fees $5,000 $75,000
Kitchen Equipment Package $155,000 $262,500
Restaurant Equipment, Furniture, Small Wares, Interior Signage and Menu Panels $75,000 $136,500
POS Computer, tablet computers, and Software $20,300 $40,750
Project Management and Construction Management, Expediting and Submission Service $0 $30,000
Signs, Interior Art Package and Décor Items $12,000 $30,000
Attorney and Accounting Fees $4,000 $10,000
Security Deposits (excluding real estate); Utility Deposits and Business Licenses and Permits $3,000 $30,000
Tableware, Small Wares and Supplies $10,000 $12,000
Inventory (Proprietary Products; Non-Proprietary Products) $20,000 $50,000
Insurance $5,000 $10,000
Grand Opening Marketing Traditional $10,000 $10,000
Wine/Beer or Full Liquor License $1,000 $400,000
Miscellaneous costs to begin operations and Additional Funds for first 3 months of operations $50,000 $200,000
Total $724,133 $1,983,750

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Number of units

2024
Franchised units

24

19

14

Company-owned units

1

0

2

Total units

25

19

16

Franchise Disclosure Document

Training 

The franchisor provides an extensive training program tailored for up to three participants, covering the essentials of running the Franchised Business. The training is segmented into three key modules:

  1. In-Store Training: Hands-on training conducted within the restaurant.
  2. KTEC Classroom Training: Classroom instruction focused on kitchen operations and overall business management.
  3. New Store Opening: Training dedicated to the specifics of launching a new restaurant.

Additional Programs and Ongoing Support

Franchisees may be required to attend refresher courses or additional training sessions. The franchisor also organizes an annual conference to introduce new products, sales strategies, marketing techniques, staff training methods, advertising initiatives, and merchandising practices.

Training Store Certification

Franchisees can apply for Training Store Certification, signifying that their business meets the franchisor's performance standards and that both the General Manager and Kitchen Manager possess the required experience and training credentials set by the franchisor.

Continuous Training and Support

The franchisor offers ongoing support through evaluations, inspections, and additional training opportunities. These sessions may be mandatory and can take place at various locations determined by the franchisor.

Territory Protection

The franchisor has the discretion to assign a "Protected Area" for The Counter restaurant, defined by specific geographic or political boundaries such as roads or distance radii. Despite this, franchisees will not be granted exclusive territorial rights. Competition could come from other franchisees, franchisor-owned outlets, or other distribution channels or brands managed by the franchisor.

Certain locations are excluded from the Protected Area. These include airport properties, mass transit stations, professional sports stadiums, hotels, military bases, entertainment parks, casinos, and educational institutions. In these areas, the franchisor or its affiliates may open The Counter restaurants in any format.

Franchisees should be aware of limitations regarding their territorial rights. The franchisor retains the right to sell products and services within the franchisee's territory through various means, such as online platforms and retail stores not branded as The Counter.

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