Little Big Burger Franchise Cost, Revenue & Review 2026
- Investment
- $206K – $607K
- Disclosed sales
- $763K
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Little Big Burger is a fast-casual franchise serving small-format gourmet burgers, truffle fries, and shakes. Franchisees run the restaurants, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Little Big Burger franchise requires a total initial investment of $206K – $607K, including a $30K franchise fee and an ongoing 5.0% royalty[2]. Per the 2022 FDD, average unit revenue was $763K[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2022 filing · Data extracted: · Last cited check: · Staleness risk: high - figures are from a filing two or more years old
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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $206K – $607K
- 25th pct Service Resta…
- Avg gross sales
- $763K
- Company-owned onlyNet sales
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 16
- 46th pct Service Resta…
- SBA charge-off
- N/A
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 $206K – $607K including a $30K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $763K/year (median $790K) (company-owned outlets only - not franchisee performance).
- RISKVerdict C (Average), verdict score 48/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
- FLAGAuditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- LBB Franchising, LLC
- Parent company
- LBB Acquisition, LLC
- FDD Item 1, page 6 of the 2022 FDD
- Ultimate parent
- Amergent Hospitality Group, Inc.
- FDD Item 1, page 7 of the 2022 FDD
- CEO title
- Chairman and Chief Executive Officer
- Mike Pruitt
- Incorporated in
- NC
- HQ
- 7621 Little Avenue, Suite 414, Charlotte, NC 28226
- Auditor
- Cherry Bekaert LLP
- Audited financials
- Franchisor revenue
- $20.7M
- vs $18.8M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2022
- Status as of 2022; may have been resolved in a later filing we don't yet have.
Overview
About
- CEO
- Mike Pruitt
- Headquarters
- NC
- Founded
- 2017
- FDD year
- 2022
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 16% below the typical quick-service restaurants franchise.
Source: FDD 2022 · Items 5–7
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $13K | $20K |
| Equipment, build-out, other | $164K | $557K |
| Total initial investment | $206K | $607K |
Source: Little Big Burger 2022 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
- $206K – $607K
- Top 40% of category vs category
- Liquid capital req'd
- $13K – $20K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of net sales |
| Marketing / ad fund | 1.5% of net sales |
| Technology fee | $4K |
| Transfer fee | $8K |
| Renewal fee | $8K |
| Inventory (initial) | $5K – $12K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 22% below the quick-service restaurants norm.
Company-owned outlets only - not franchisee performance
Reported as net sales, not gross sales
Source: FDD 2022 · 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 Little Big Burger 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
$423K
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 Little Big Burger 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: 2022 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
Reported as net sales, not gross sales
- Avg gross sales
- $763K
- Per unit, per year
- Median gross sales
- $790K
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
- 15 outlets
- vs category median 19
- Range (low → high)
- $328K→$1.1MCited, not corroborated — printed on page 41 of the 2022 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2021
- Fiscal year the figures cover
- Source filing
- FDD 2022
- Disclosed in the 2022 filing, covering 2021
- 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 $763K/year in gross sales. Revenue-to-investment ratio: 1.9x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 6.5% (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.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Little Big Burger 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 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 16
- Opened
- 0
- 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
- N/A
- Company-owned
- 16
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 1.0%
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 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.
3
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.
No SBA loan data available for this brand.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
⚠ Grade capped at C: the auditor disclosed a going-concern note (FDD Item 21). The verdict score reflects the underlying financials before that cap.
Micro-franchise system with undisclosed profitability metrics, corporate litigation history, and parent company going concern issues presents meaningful execution and transparency risks despite reasonable royalty rate.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Francis Howard v. Chanticleer Holdings, Inc., Michael D. Pruitt, et al. (S.D. Fla., Case No. 12-81123-CIV) - securities law violation class action settled for $850,000 in 2014.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cherry Bekaert LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited financials are for the ultimate parent, Amergent Hospitality Group, Inc. and Subsidiaries (FY ended Dec 31, 2021); not for franchisor LBB Franchising, LLC. Total revenue of $20,652K comprises restaurant sales $19,797K, gaming income $403K, and franchise income $452K. Going-concern doubt noted by auditor.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 48 / 100 verdict
- 01HIGHParent company (Chanticleer Holdings) settled $850K securities litigation in 2012-2014, indicating governance/disclosure concerns at corporate level
- 02MEDNet income not disclosed in FDD — inability to validate profitability claims against $763K average revenue figure
- 03MINOROnly 16 franchise units with unknown growth trajectory — extremely small system raises sustainability questions
- 04HIGHGoing Concern status suggests financial instability at parent company despite franchise recruitment
- 05MEDHigh investment range ($206K-$607K) paired with undisclosed net income creates opacity on ROI timeline
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · 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 | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | Charlotte, North Carolina |
| Jury trial waiver | No |
| Governing law | NC |
| Litigation count | 1 |
View Item 3 litigation summary
Francis Howard v. Chanticleer Holdings, Inc., Michael D. Pruitt, et al. (S.D. Fla., Case No. 12-81123-CIV) - securities law violation class action settled for $850,000 in 2014.
Items 10, 11
Training & Operations
- Classroom training
- 5 hrs
- On-the-job training
- 96 hrs
- Training location
- Affiliate-Owned Restaurant (Portland, OR); webinar/call
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- TOAST POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TOAST POS System
Item 20 · call current owners
Franchisee Contacts
12 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 Little Big Burger franchise?
The total investment to open a Little Big Burger franchise ranges from $206K – $607K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Little Big Burger franchise owners earn?
According to Item 19 of the Little Big Burger FDD, the average gross sales per unit is $763K. The median is $790K. Important context: Company-owned outlets only - not franchisee performance; Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Little Big Burger?
Little Big Burger is franchised by LBB Franchising, LLC. Its parent company is LBB Acquisition, LLC. The ultimate parent named in the FDD is Amergent Hospitality Group, Inc.. Source: FDD Item 1, 2022 filing.
What is Item 19 in the Little Big Burger 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 Little Big Burger FDD and qualifies whose outlets they describe.
What is Little Big Burger's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Little Big Burger (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Little Big Burger franchise locations are there?
As of their most recent FDD filing, Little Big Burger has 16 total units in the United States.
Is Little Big Burger a good franchise to buy?
FranchiseVerdict rates Little Big Burger as a C-grade franchise with a verdict score of 48 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.