BurgerFi Franchise Cost, Revenue & Review 2026
- Investment
- $705K – $1.2M
- Disclosed sales
- $1.3M
- gross sales, not profit
- SBA charge-off
- 6.7%
- on 26 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
BurgerFi is a fast-casual franchise serving all-natural Angus burgers, hot dogs, hand-cut fries, and frozen custard, plus craft beer and wine. Franchisees run restaurants managing food prep, service, and staffing.
FranchiseVerdict summary · 2026
A BurgerFi franchise requires a total initial investment of $705K – $1.2M, including a $35K franchise fee and an ongoing 5.5% royalty[2]. Per the 2025 FDD, average unit revenue was $1.3M[2]. SBA 7(a) loans show a 6.7% charge-off rate across 26 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.
Overview
- Investment
- $705K – $1.2M
- 86th pct Service Resta…
- Avg gross sales
- $1.3M
- 24th pct Service Resta…
- Royalty
- 5.5%
- 44th pct Service Resta…
- Units
- 82
- 73rd pct Service Resta…
- SBA charge-off
- 6.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $705K – $1.2M including a $35K franchise fee, 5.5% ongoing royalty.
- RETURNSAverage unit revenue of $1.3M/year (median $1.2M).
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 6.7% across 26 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -12 franchised outlets in the latest year (8 opened, 20 closed); 2 signed but not yet open (Item 20).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- BurgerFi Franchise, LLC
- Parent company
- BFI Restaurant Group Holdings LLC
- Predecessor
- BurgerFi International, Inc. / BurgerFi International, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Manager
- Happy Asker
- Incorporated in
- Michigan
- HQ
- 30955 Northwestern Hwy. Suite 300, Farmington Hills, Michigan 48334
- Auditor
- UHY LLP
- Audited financials
Affiliated brands
- and owns our Proprietary
- BFI Restaurant Group
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Happy Asker
- Headquarters
- Michigan
- Founded
- 2011
- FDD year
- 2025
- States available
- 26
Can you afford it, and what does the money buy?
Entry cost runs 93% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Feenot refundable | $35K | $35K | |
| Rentnot refundable | $11K | $33K | |
| Security Deposits | $10K | $25K | |
| Leasehold Improvementsnot refundable | $356K | $564K | |
| Equipment, Furniture and Fixturesnot refundable | $235K | $325K | |
| Insurancenot refundable | $6K | $10K | |
| Permits and Licensesnot refundable | $2K | $15K | |
| Initial Inventorynot refundable | $6K | $18K | |
| Signagenot refundable | $4K | $15K | |
| Grand Opening Advertisingnot refundable | $15K | $30K | |
| Architecture & MEP Drawingsnot refundable | $13K | $20K | |
| Travel Expenses for Trainingnot refundable | $0 | $15K | |
| Professional Feesnot refundable | $3K | $7K | |
| Opening Assistancenot refundable | $0 | $15K | |
| Additional Funds (3 months)not refundable | $10K | $45K | |
| Total initial investment | $705K | $1.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $705K – $1.2M
- Bottom third — review vs category
- Liquid capital req'd
- $10K – $45K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 5.5%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $9K |
| Renewal fee | $9K |
| Inventory (initial) | $6K – $18K |
| Total fee load | 7.5% of rev |
What do units actually make?
Average unit sales run 29% above the quick-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for BurgerFi until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$966K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one BurgerFi unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $1.3M
- Per unit, per year
- Median gross sales
- $1.2M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 55 outlets
- vs category median 19 · large
- Quartile band
- $648K→$1.9M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.3M/year in gross sales. Revenue-to-investment ratio: 1.3x.
Fee burden
Total ongoing fee load of 7.5% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -25.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How BurgerFi Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 82
- Opened
- 8
- Last reporting year
- Closed
- 20
- Terminated
- 20
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 24.4%
- Company-owned
- 16
- Corporate units in the system
- % franchised
- 81%
- vs corporate-owned
- Net growth (3-yr)
- -25.0%
- Net unit change over 3 years
- 3-yr CAGR
- -25.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 20
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 2
- 0.02 per open outlet · Item 20 Table 5
- Projected new
- 3
- Franchisor's next-year forecast
- Ceased ops
- 16.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Michigan
- Washington
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
45 current owners across 15 states.
- FL 16
- GA 5
- NY 5
- AK 4
- MI 3
- CT 2
- IN 2
- AL 1
- CO 1
- IL 1
- NC 1
- NJ 1
- +3 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 26
- Loan volume
- $16.0M
- Median loan
- $575K
- 50th percentile
- Charge-off rate
- 6.7%
- on 26 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 93.3%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 15
- Defaults
- 1
- Typical loan rate
- 5.5%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 621
- 4.6 per loan
- Lender concentration
- 21%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Top lenders financing BurgerFi franchisees
Showing 3 of 15 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for BurgerFi from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 5.49%
- Lender concentration
- 21.1%
- Job velocity
- 4.6 per $100K
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 621
Top SBA lendersTop lender holds 21% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | BCB Community Bank | 4 | $2.5M | 0.0% |
| 2 | JPMorgan Chase Bank, National Association | 2 | $539K | 0.0% |
| 3 | Dogwood State Bank | 2 | $977K | N/A |
| 4 | Business Development Corporation of South Carolina | 1 | $525K | 0.0% |
| 5 | Renasant Bank | 1 | $350K | 0.0% |
| 6 | PNC Bank, National Association | 1 | $760K | 0.0% |
| 7 | Truist Bank | 1 | $721K | 0.0% |
| 8 | Stearns Bank National Association | 1 | $260K | 0.0% |
| 9 | Millennium Bank | 1 | $775K | N/A |
| 10 | Newtek Small Business Finance, Inc. | 1 | $269K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| FLFlorida | 7 | 0 | 0.0% |
| NJNew Jersey | 3 | 0 | 0.0% |
| CTConnecticut | 2 | 0 | 0.0% |
| AZArizona | 1 | 0 | 0.0% |
| GAGeorgia | 1 | 0 | 0.0% |
| ILIllinois | 1 | 0 | -- |
| MIMichigan | 1 | 0 | -- |
| OHOhio | 1 | 0 | 0.0% |
| SCSouth Carolina | 1 | 0 | 0.0% |
| TXTexas | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 6.7% — 58% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Four disclosed matters: (1) DAJA I, LLC v. BurgerFi International - franchisee fraud/misrepresentation claims over 11-unit development, settled 2020 with franchisee surrendering claims and a restaurant; (2) Burger Guys entities v. BurgerFi International - fraudulent inducement claims, settled April 2025 with affiliate purchasing partial interests for $1,441,317; (3) US v. Happy Asker, Maher Bashi et al. - criminal tax fraud indictment against principals (franchisor not a party), both convicted with prison sentences and restitution; (4) Edmond Mourad et al. v. Happy's Pizza Franchise - franchise fee refund dispute, settled with $335,000 refund.
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 years)
Predecessor BurgerFi International and its affiliates filed Chapter 11 petitions on September 11, 2024 (Case No. 24-12017-CTG, D. Del.). System assets were sold via bankruptcy sale process, ultimately acquired by Restaurant Group (an affiliate of current franchisor) on November 27, 2024, with IP sold to BF Company; final liquidation order issued March 12, 2025.
Audited financials (Item 21)
Yes · UHY LLP
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 01MEDUnit count declined 15.4% YoY (82 units) — system is actively contracting, not growing
- 02HIGHMultiple active litigation cases including fraud allegations, criminal indictment of officers for tax fraud conspiracy, and negligent misrepresentation claims — pattern of disputes with franchisees
- 03MEDNet income not disclosed in FDD Item 19 — cannot validate the $1.26M average revenue translates to acceptable profitability after 5.5% royalty + CoGS
- 04MINORHigh investment threshold ($704K-$1.17M) paired with declining unit count creates poor risk/reward profile
- 05HIGHCriminal indictment against named officers (Happy Asker, Maher Bashi) for conspiracy to defraud U.S. and filing false tax returns — raises questions about corporate integrity and financial reporting accuracy
- 06HIGHMultiple franchisee refund disputes and fraud inducement claims suggest corporate may have misrepresented unit economics or support
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 13 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Arbitration location | Fort Lauderdale, FL |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 4 |
View Item 3 litigation summary
Four disclosed matters: (1) DAJA I, LLC v. BurgerFi International - franchisee fraud/misrepresentation claims over 11-unit development, settled 2020 with franchisee surrendering claims and a restaurant; (2) Burger Guys entities v. BurgerFi International - fraudulent inducement claims, settled April 2025 with affiliate purchasing partial interests for $1,441,317; (3) US v. Happy Asker, Maher Bashi et al. - criminal tax fraud indictment against principals (franchisor not a party), both convicted with prison sentences and restitution; (4) Edmond Mourad et al. v. Happy's Pizza Franchise - franchise fee refund dispute, settled with $335,000 refund.
Items 10, 11
Training & Operations
- Classroom training
- 33 hrs
- On-the-job training
- 205 hrs
- Training location
- Restaurant Support Center and Corporate Certified Training Facility, Fort Lauderdale, Florida area
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisee_selects_franchisor_approves
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
45 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a BurgerFi franchise?
The total investment to open a BurgerFi franchise ranges from $705K – $1.2M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do BurgerFi franchise owners earn?
According to Item 19 of the BurgerFi FDD, the average gross sales per unit is $1.3M. The median is $1.2M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns BurgerFi?
BurgerFi is franchised by BurgerFi Franchise, LLC. Its parent company is BFI Restaurant Group Holdings LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the BurgerFi FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the BurgerFi FDD and qualifies whose outlets they describe.
What is BurgerFi's franchise failure rate?
Based on SBA 7(a) loan data, BurgerFi has a charge-off rate of 6.7% across 26 loans, meaning 6.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many BurgerFi franchise locations are there?
As of their most recent FDD filing, BurgerFi has 82 total units in the United States, including 66 franchised units and 16 company-owned units. 8 new units were opened in the latest reporting year.
Is BurgerFi a good franchise to buy?
FranchiseVerdict rates BurgerFi as a B-grade franchise with a verdict score of 56 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.