SmashburgerFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Smashburger franchise requires a total initial investment of $1.2M – $2.3M, including a $40K franchise fee and an ongoing 5.5% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 18.2% charge-off rate across 11 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $1.2M – $2.3M
- 45th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.5%
- 24th pct Service Resta…
- Units
- 194
- 45th pct Service Resta…
- SBA default
- 18.2%
- 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
Franchised units fell from 82 to 65 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $1.2M – $2.3M including a $40K franchise fee, 5.5% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 81/100. SBA loan charge-off rate of 18.2% across 11 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Smashburger Franchising LLC
- Parent company
- Jollibee Foods Corporation
- Incorporated in
- DE
- HQ
- 3900 East Mexico Avenue, Suite 1300, Denver, CO 80210
- Auditor
- Thong, Yu, Wong & Lee, LLP
- Audited financials
- Franchisor revenue
- $7.1M
- vs $7.2M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- CBTL Franchising
- Smashburger AFT
- Smashburger IP Holder
- Smashburger Servicing
- Smashburger Gift Card
- Smashburger Purchasing Company
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate fast-casual burger restaurants serving premium smashed-beef patties, specialty toppings, and craft beverages. Day-to-day operations include food preparation, staff management, inventory control, POS systems, and customer service in dine-in/carry-out environments.
- CEO
- James Sullivan
- Headquarters
- CO
- Founded
- 2008
- FDD year
- 2025
- States available
- 24
FDD Item 7 · 2025 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Development Fee for Multiple Restaurantsnot refundable | $40K | $500K | |
| Initial Feesnot refundable | $40K | $40K | |
| Leasehold Improvements | $710K | $1.3M | |
| Furniture, Fixtures and Equipment | $264K | $458K | |
| Signage | $25K | $60K | |
| IT, POS System | $40K | $50K | |
| Three Month's Rent | $28K | $38K | |
| Security Deposit, Business Licenses | $0 | $26K | |
| Opening Inventory and Supplies | $20K | $28K | |
| Grand Opening Advertising | $10K | $15K | |
| Training Expenses | $35K | $101K | |
| Grand Opening Trainingnot refundable | $0 | $30K | |
| Miscellaneous Opening Costs | $1K | $5K | |
| Professional Fees | $5K | $15K | |
| Architecture and Building Design Fees | $20K | $50K | |
| Insurance Premiums - 3 Months | $20K | $40K | |
| Liquor Licensing | $10K | $21K | |
| Lease Review Feenot refundable | $2K | $2K | |
| Additional Funds - 3 months | $10K | $20K | |
| Total initial investment | $1.3M | $2.8M |
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
- $1.2M – $2.3M
- Near category avg vs category
- Liquid capital req'd
- $10K – $20K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 5.5%
- Gross Sales · typical 6–8%
- Ad fund
- 2.3%
- typical 3–5%
- Total fee load
- 7.8%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 2.3% of gross sales |
| Technology fee | $250 |
| Transfer fee | $15K |
| Renewal fee | $20K |
| Total fee load | 7.8% 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 Smashburger Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 194
- Opened
- 6
- Last reporting year
- Closed
- 14
- Turnover rate
- 7.2%
- Company-owned
- 129
- Corporate units in the system
- % franchised
- 34%
- vs corporate-owned
- Net growth (yr3)
- -16.7%
- Net unit change last year
- 3-yr CAGR
- -20.7%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 6
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 1.4%
- Owners selling to other franchisees
- Continuity rate
- 77.4%
- Units that stayed open
- Ceased ops
- 6.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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.
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
- 11
- Loan volume
- $7.2M
- Median loan
- $463K
- 50th percentile
- Charge-off rate
- 18.2%
- 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)
- 75.0%
- 5-yr charge-off
- 100.0%
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Smashburger's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 9 lenders with concentration factor
- Per-state charge-off rates across 8 states
- Startup risk premium and job creation velocity
- 8-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Smashburger presents HIGH RISK due to accelerating unit decline, material litigation history, absent financial transparency, and substantial capital requirements in a contracting franchise system.
Litigation (Item 3)
1 case reference(s): 0 pending, 2 settled.
Largest disclosed settlement: $3
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; or (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained
Audited financials (Item 21)
Yes · Thong, Yu, Wong & Lee, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 81 / 100 rating
- 01MEDUnit count declined 16.7% YoY (194 units), indicating system contraction and potential franchisee struggles
- 02MEDNo Item 19 financial performance data disclosed — unable to validate claimed profitability or ROI
- 03HIGHTwo significant litigation settlements (2023 and 2025) suggest operational/marketing compliance issues and reputational risk
- 04MINORHigh initial investment ($1.2M–$2.3M) paired with declining unit base creates elevated failure risk for new franchisees
- 05MED5.5% royalty on undisclosed average revenue means true net margins are unknowable; cash flow sustainability unclear
- 06MINOR15-year term locks franchisees into declining brand with no performance benchmarks to assess exit viability
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 | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | Development Area |
| Protected territory | Yes |
| Online sales rights | 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 |
| Termination notice | 30 days |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 2 |
View Item 3 litigation summary
1 case reference(s): 0 pending, 2 settled.
Items 10, 11
Training & Operations
- Classroom training
- 5 hrs
- On-the-job training
- 264 hrs
- Training location
- On-site and corporate
- POS system
- Aloha
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Aloha
Item 20 · call current owners
Franchisee Contacts
76 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Smashburger · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Smashburger franchise?
The total investment to open a Smashburger franchise ranges from $1.2M – $2.3M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Smashburger franchise owners earn?
Smashburger 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 Smashburger's franchise failure rate?
Based on SBA 7(a) loan data, Smashburger has a charge-off rate of 18.2% across 11 loans, meaning 18.2% 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 Smashburger franchise locations are there?
As of their most recent FDD filing, Smashburger has 194 total units in the United States, including 82 franchised units and 129 company-owned units. 6 new units were opened in the latest reporting year.
Is Smashburger a good franchise to buy?
FranchiseVerdict rates Smashburger as a F-grade franchise with a risk score of 81 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.
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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.