Farmer Boys Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Farmer Boys is a California fast-casual franchise serving farm-fresh burgers, big breakfasts, and salads. Franchisees run restaurants with drive-thru and dine-in service, managing food prep and staffing.
FranchiseVerdict summary · 2026
A Farmer Boys franchise requires a total initial investment of $1.6M – $3.2M, including a $35K – $45K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.4M[2]. SBA 7(a) loans show a 10.0% charge-off rate across 20 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $1.6M – $3.2M
- 50th pct Service Resta…
- Avg gross sales
- $2.4M
- 24th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 102
- 43rd pct Service Resta…
- SBA charge-off
- 10.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · 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
- Total investment $1.6M – $3.2M including a $35K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.4M/year (median $2.3M).
- Verdict A (Strongest tier), verdict score 65/100 (higher is better). SBA loan charge-off rate of 10.0% across 20 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Farmer Boys Franchising Co.
- Parent company
- Farmer Boys Food Inc.
- Predecessor
- Farmer Boys Food Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Chief Financial Officer
- George A. Havadjias
- Incorporated in
- CA
- HQ
- 3452 University Avenue, Riverside, CA 92501
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $17.9M
- vs $17.9M prior year
Affiliated brands
- and which the franchisee leases or subleases the Restaurant premises from the owner or tenant
- Havadjia Holdings
- Farmer Boys Vegas
- Farmer Boys Interstate Franchising
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- George A. Havadjias
- Headquarters
- CA
- Founded
- 1997
- FDD year
- 2025
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 155% above the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $35K | $45K | |
| Real Estate (includes security deposit and first months' rent on land lease) | $24K | $48K | |
| Furniture, Equipment and Signs | $650K | $850K | |
| Construction of Building and Surroundings | $635K | $1.8M | |
| Insurance | $10K | $15K | |
| Initial Inventory | $15K | $20K | |
| Training Expenses | $110K | $180K | |
| Lodging Expenses | $12K | $36K | |
| Grand Opening Advertising | $2K | $5K | |
| Professional Fees | $5K | $20K | |
| Point of Sale | $28K | $41K | |
| Additional Funds | $69K | $149K | |
| Total initial investment | $1.6M | $3.2M |
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
- $1.6M – $3.2M
- Middle of category vs category
- Liquid capital req'd
- $69K – $149K
- Middle of category vs category
- Franchise fee
- $35K – $45K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $650 |
| Training fee | $180K |
| Transfer fee | $23K |
| Renewal fee | $11K |
| Inventory (initial) | $15K – $20K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 56% above the full-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$239K
10.0% margin
Unlevered ROIC
10%
EBITDA / total invested capital
Payback
10.5 yrs
cash-on-cash, unlevered
Financial Performance
- Avg gross sales
- $2.4M
- Per unit, per year
- Median gross sales
- $2.3M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- net_sales
- Sample size
- 94 units
- vs category median 16 · large
- Range (low → high)
- $1.2M→$5.1M
- Cohort dispersion (min → max)
- Quartile band
- $1.7M→$3.2M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 1273 Full-Service Restaurants brands
Revenue is only 1.0x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
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 $2.4M/year in gross sales. Revenue-to-investment ratio: 1.0x.
Fee burden
Total ongoing fee load of 8.0% (near the Full-Service Restaurants average).
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (+1.4% 3-year CAGR) with 102 units.
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 Full-Service Restaurants averages
How Farmer Boys Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 102
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 30
- Corporate units in the system
- % franchised
- 71%
- vs corporate-owned
- Net growth (3-yr)
- +1.4%
- Net unit change over 3 years
- 3-yr CAGR
- +1.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 9
- Franchisor's next-year forecast
- Transfer rate
- 1.4%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 20
- Loan volume
- $21.4M
- Median loan
- $1.0M
- 50th percentile
- Charge-off rate
- 10.0%
- 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)
- 90.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 1
- Typical loan rate
- 6.4%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 774
- 3.6 per loan
- Lender concentration
- 65%
- top lender's share
Borrower mix: 38% went to startups / new businesses, 62% 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 Farmer Boys franchisees
Showing 3 of 6 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.
Premium insight
SBA Lending Report
Deep-dive into Farmer Boys's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 9-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 10.0% — 38% 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
Farmer Boys presents moderate-to-cautious risk: minimal unit growth, withheld profitability data, recent franchisee litigation, and high capital requirements create uncertainty around unit economics and system health.
Litigation (Item 3)
Farmer Boys as plaintiff in arbitration against 3 franchisee entities and principal Michael Ledbetter for abandonment of Restaurants and breach of franchise agreements; Final Award issued Nov 15 2024 in favor of Farmer Boys ($903,549.70 damages plus $89,017.05 costs); Judgment confirmed April 24 2025
Largest disclosed settlement: $903,549
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 65 / 100 verdict
- 01MINORStagnant unit growth at 1.4% YoY indicates system maturation or contraction pressure with only 102 units
- 02MEDNet income not disclosed in Item 19 prevents accurate ROI analysis and profit transparency
- 03HIGHRecent litigation ($903k+ awarded against franchisees) suggests franchise relationship tensions and enforcement issues
- 04MEDHigh initial investment ($1.6M-$3.2M) paired with undisclosed profitability creates significant capital-at-risk exposure
- 05MINORNo going concern statement raises questions about franchisor financial stability and long-term viability
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% 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 | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Riverside, California |
| Jury trial waiver | Yes |
| Governing law | CA |
| Litigation count | 1 |
View Item 3 litigation summary
Farmer Boys as plaintiff in arbitration against 3 franchisee entities and principal Michael Ledbetter for abandonment of Restaurants and breach of franchise agreements; Final Award issued Nov 15 2024 in favor of Farmer Boys ($903,549.70 damages plus $89,017.05 costs); Judgment confirmed April 24 2025
Items 10, 11
Training & Operations
- Classroom training
- 67 hrs
- On-the-job training
- 473 hrs
- Training location
- Affiliate-owned Farmer Boys Restaurant and Farmer Boys headquarters, Riverside, CA
- Ongoing training
- Required
- Time to open
- 24 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Maitre D
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Maitre D
Item 20 · call current owners
Franchisee Contacts
98 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Farmer Boys · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Farmer Boys franchise?
The total investment to open a Farmer Boys franchise ranges from $1.6M – $3.2M, 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 Farmer Boys franchise owners earn?
According to Item 19 of the Farmer Boys FDD, the average gross sales per unit is $2.4M. The median is $2.3M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Farmer Boys's franchise failure rate?
Based on SBA 7(a) loan data, Farmer Boys has a charge-off rate of 10.0% across 20 loans, meaning 10.0% 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 Farmer Boys franchise locations are there?
As of their most recent FDD filing, Farmer Boys has 102 total units in the United States, including 72 franchised units and 30 company-owned units. 1 new units were opened in the latest reporting year.
Is Farmer Boys a good franchise to buy?
FranchiseVerdict rates Farmer Boys as a A-grade franchise with a verdict score of 65 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
Are you the franchisor?
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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.