Smashburger Franchise Cost, Revenue & Review 2026
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]. 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]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $1.2M – $2.3M
- 96th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.5%
- 42nd pct Service Resta…
- Units
- 194
- 83rd pct Service Resta…
- SBA charge-off
- 18.2%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-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
- COSTTotal investment $1.2M – $2.3M including a $40K franchise fee, 5.5% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict C (Average), verdict score 39/100 (higher is better). SBA loan charge-off rate of 18.2% across 11 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
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)
- Ultimate parent
- Jollibee Foods Corporation
- 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
- $7.1M
- 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
- 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 165% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown19 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
- 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%
- 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 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Smashburger did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Smashburger unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
6%
Below the 30–60% attractive-franchise band
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
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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 average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Smashburger Compares
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
- 14
- Turnover rate
- 21.5%
- 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
3-year detail · Item 20
- Opened (3yr)
- 6
- Closed (3yr)
- 14
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 5
- 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)
- 81.8%
- 5-yr charge-off
- 100.0%
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 2
- Typical loan rate
- 7.0%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand above franchise avg ↑
- 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.
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.
What could kill this investment?
SBA loans charge off at 18.2% — 14% above the 16.0% national norm, i.e. higher 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
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)
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 39 / 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 | 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 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?
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 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 C-grade franchise with a verdict score of 39 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?
If you represent Smashburger, you can request corrections or provide updated information.
Other Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-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.