Flame BroilerFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Flame Broiler franchise requires a total initial investment of $465K – $776K, including a $35K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 4.5% charge-off rate across 27 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $465K – $776K
- 31st pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 125
- 43rd pct Service Resta…
- SBA default
- 4.5%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1999. Systems this mature have refined operations and brand recognition.
The system contracted 8% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $465K – $776K including a $35K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 43/100. SBA loan charge-off rate of 4.5% across 27 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -15.9% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- The Flame Broiler, Inc.
- Ultimate parent
- Young R. Lee and Sarah J. Lee Family Trust
- CEO title
- CEO and Director
- Young R. Lee
- CEO experience
- 28 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 1538 E. Warner Avenue, Suite E, Santa Ana, California 92705
- Auditor
- Macias Gini & O’Connell LLP
- Audited financials
- Franchisor revenue
- $12.0M
- vs $14.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate quick-service flame-grilled chicken and protein restaurants, managing inventory, food preparation, customer service, and marketing at individual locations. Daily operations involve staffing, food sourcing, point-of-sale management, and maintaining brand standards across a menu-driven fast-casual model.
- CEO
- Young R. Lee
- Headquarters
- CA
- Founded
- 1996
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $67K | $135K |
| Equipment, build-out, other | $363K | $606K |
| Total initial investment | $465K | $776K |
Source: Flame Broiler 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $465K – $776K
- Better than avg vs category
- Liquid capital req'd
- $67K – $135K
- Near category avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 5.0%
- Net Sales · 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 |
| Transfer fee | $50 |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Flame Broiler Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 125
- Opened
- 2
- Last reporting year
- Closed
- 8
- Turnover rate
- 6.4%
- Company-owned
- 14
- Corporate units in the system
- % franchised
- 89%
- vs corporate-owned
- Net growth (yr3)
- -7.5%
- Net unit change last year
- 3-yr CAGR
- -15.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 7
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 5 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
5
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 27
- Loan volume
- $5.0M
- Median loan
- $187K
- average
- Charge-off rate
- 4.5%
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 15
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Flame Broiler presents meaningful risk: declining unit count, missing financial disclosure, unprotected territories, and an opaque profit model that prevents ROI validation.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Macias Gini & O’Connell 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: Yes
Score breakdown · what drove the 43 / 100 rating
- 01MEDUnit count declined 7.5% YoY (125 units) — indicates system contraction and weak franchisee performance or retention
- 02MINORNo average revenue or net income disclosure (Item 19) — impossible to validate ROI claims or benchmark profitability
- 03MINORUnprotected territory — franchisees face direct competition from other Flame Broiler units and no exclusivity guarantee
- 04MEDHigh investment range ($464K–$776K) paired with 5% royalty on undisclosed sales — difficult to model payback period
- 05MINOR10-year term with $35K franchise fee — long commitment with moderate upfront cost and ongoing 5% drain on profits
- 06HIGHNo 'Going Concern' flag in FDD suggests potential financial stability issues with franchisor
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Orange County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 60 hrs
- On-the-job training
- 420 hrs
- Training location
- franchisor headquarters or designated location
- POS system
- Brink POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Brink POS
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Flame Broiler · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Flame Broiler franchise?
The total investment to open a Flame Broiler franchise ranges from $465K – $776K, 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 Flame Broiler franchise owners earn?
Flame Broiler does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Flame Broiler's franchise failure rate?
Based on SBA 7(a) loan data, Flame Broiler has a charge-off rate of 4.5% across 27 loans, meaning 4.5% 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 Flame Broiler franchise locations are there?
As of their most recent FDD filing, Flame Broiler has 125 total units in the United States, including 111 franchised units and 14 company-owned units. 2 new units were opened in the latest reporting year.
Is Flame Broiler a good franchise to buy?
FranchiseVerdict rates Flame Broiler as a A-grade franchise with a risk score of 43 out of 100, 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?
If you represent Flame Broiler, you can request corrections or provide updated information.
Claim this brandOther Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.