Smashburger Franchise Cost, Revenue & Review 2026
- Investment
- $1.2M – $2.3M
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 11 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Smashburger is a fast-casual franchise known for its smashed-to-order beef burgers, specialty toppings, and shakes. Franchisees run restaurants managing food prep, dine-in and takeout service, and staffing.
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. 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 scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $1.2M – $2.3M
- 95th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.5%
- 44th pct Service Resta…
- Units
- 194
- 83rd 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 $1.2M – $2.3M including a $40K franchise fee, 5.5% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 53/100 (higher is better).
- GROWTHNegative: net -13 franchised outlets in the latest year (6 opened, 19 closed) (Item 20).
- DECLINESystem contracting at -28.6% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Smashburger Franchising LLC
- Parent company
- Smashburger Finance LLC (ultimately Jollibee Foods Corporation)
- FDD Item 1, page 8 of the 2025 FDD
- Ultimate parent
- Jollibee Foods Corporation
- FDD Item 1, page 8 of the 2025 FDD
- CEO title
- President and Chief Executive Officer
- James Sullivan
- Incorporated in
- Delaware
- HQ
- 3900 East Mexico Avenue, Suite 1300, Denver, Colorado, 80210
- Auditor
- Thong, Yu, Wong & Lee, LLP
- Audited financials
- Franchisor revenue
- $7.2M
- vs $7.1M 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).
Same owner · FDD Item 1, page 8
3 other brands on this site name Jollibee Foods Corporation as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- James Sullivan
- Headquarters
- CO
- Founded
- 2007
- FDD year
- 2025
- States available
- 24
Can you afford it, and what does the money buy?
Entry cost runs 260% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Fees | $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 Training | $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 Fee | $2K | $2K | |
| Additional Funds - 3 months | $10K | $20K | |
| Total initial investment | $1.2M | $2.3M |
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
- Bottom third — review vs category
- Liquid capital req'd
- $10K – $20K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 5.5%
- 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 |
| Inventory (initial) | $20K – $28K |
| Total fee load | 7.8% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Smashburger makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Smashburger 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 annual revenue, 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.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.8% (near the Quick-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -28.6% 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 Smashburger 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
- 194
- Opened
- 6
- Last reporting year
- Closed
- 19
- Turnover rate
- 9.8%
- Company-owned
- 129
- Corporate units in the system
- % franchised
- 34%
- vs corporate-owned
- Net growth (3-yr)
- -28.6%
- Net unit change over 3 years
- 3-yr CAGR
- -28.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Reacquired
- 5
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 4
- Franchisor's next-year forecast
- 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.
Where the owners are · Item 20 owner list
76 current owners across 16 states.
- OK 35
- CA 7
- NC 5
- CO 4
- FL 4
- NJ 4
- OH 4
- NY 3
- AZ 2
- LA 2
- AK 1
- IA 1
- +4 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
- 11
- Loan volume
- $7.2M
- Median loan
- $463K
- 50th percentile
- Charge-off rate
- Limited · 11 loans
- Limited SBA coverage: 11 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 11 loans
- 5-yr charge-off
- Limited · 11 loans
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 2
- Typical loan rate
- 7.0%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- n=12,827 loans
- Jobs supported
- 783
- 10.9 per loan
- Lender concentration
- 18%
- top lender's share
Borrower mix: 20% went to startups / new businesses, 80% 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 Smashburger franchisees
Showing 3 of 9 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 Smashburger from SBA 7(a) FOIA data.
- Principal loss rate
- 7.3%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 7.00%
- Avg chargeoff amount
- $261K
- Lender concentration
- 18.2%
- Job velocity
- 10.9 per $100K
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 783
Top SBA lendersTop lender holds 18% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Fulton Bank, National Association | 2 | $2.1M | 0.0% |
| 2 | Enterprise Bank & Trust | 2 | $1.8M | 0.0% |
| 3 | Northwest Bank | 1 | $296K | 0.0% |
| 4 | PNC Bank, National Association | 1 | $463K | 100.0% |
| 5 | First Community Bank | 1 | $855K | 0.0% |
| 6 | First Bank | 1 | $250K | N/A |
| 7 | First Internet Bank of Indiana | 1 | $313K | N/A |
| 8 | Byline Bank | 1 | $303K | 100.0% |
| 9 | Celtic Bank Corporation | 1 | $824K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 2 | 0 | 0.0% |
| NCNorth Carolina | 2 | 0 | 0.0% |
| PAPennsylvania | 2 | 0 | 0.0% |
| AZArizona | 1 | 0 | -- |
| FLFlorida | 1 | 0 | -- |
| IAIowa | 1 | 0 | 0.0% |
| TXTexas | 1 | 1 | 100.0% |
| UTUtah | 1 | 1 | 100.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Two concluded proceedings, including a 2019 deceptive-advertising class action settled 2023 for $2.5M, plus an IP dispute — both resolved, normal for a 194-unit chain. Item 19 not disclosed and units contracting (-28.6%), but positive net worth $1.77M and net income $704K on audited financials.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Two concluded proceedings disclosed: (1) In re Smashburger IP Holder, LLC class action (filed 2019) alleging deceptive advertising of the Triple Double Burger; settled 2023 for $2,500,000 in attorneys' fees/costs/class claims; (2) Smalls Sliders IP LLC v. Smashburger IP Holder LLC and Smashburger Franchising LLC (filed Dec 2024), trademark infringement/unfair competition dispute; settled and dismissed with prejudice Oct 2025.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Thong, Yu, Wong & Lee, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor revenue is royalty + franchise fee revenue only (franchisor-level financials), not systemwide unit sales; figures in thousands from audited financial statements
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 53 / 100 verdict
- 01MINOR2 concluded suits incl. $2.5M class-action settlement (resolved)
- 02MEDItem 19 not disclosed
- 03MINORUnit contraction -28.6%
- 04MINORPositive net worth $1,766,000, net income $704,000, audited
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.8% 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 | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Development Area |
| 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 | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Arbitration location | Denver, Colorado (within 50 miles of franchisor's current principal place of business) |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 2 |
View Item 3 litigation summary
Two concluded proceedings disclosed: (1) In re Smashburger IP Holder, LLC class action (filed 2019) alleging deceptive advertising of the Triple Double Burger; settled 2023 for $2,500,000 in attorneys' fees/costs/class claims; (2) Smalls Sliders IP LLC v. Smashburger IP Holder LLC and Smashburger Franchising LLC (filed Dec 2024), trademark infringement/unfair competition dispute; settled and dismissed with prejudice Oct 2025.
Items 10, 11
Training & Operations
- Classroom training
- 5 hrs
- On-the-job training
- 264 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Franchisor financing
- Not offered
- Item 10
- 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Smashburger?
Smashburger is franchised by Smashburger Franchising LLC. Its parent company is Smashburger Finance LLC (ultimately Jollibee Foods Corporation). The ultimate parent named in the FDD is Jollibee Foods Corporation. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Smashburger 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 Smashburger FDD and qualifies whose outlets they describe.
What is Smashburger's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Smashburger (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 Smashburger franchise locations are there?
As of their most recent FDD filing, Smashburger has 194 total units in the United States, including 65 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 B-grade franchise with a verdict score of 53 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.