Flame Broiler Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Flame Broiler is a fast-casual franchise serving flame-grilled chicken and beef rice bowls with a healthier positioning. Franchisees run compact restaurants managing grilling, counter service, and staffing.
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]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $465K – $776K
- 32nd pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 125
- 44th pct Service Resta…
- SBA charge-off
- 4.5%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-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
- Total investment $465K – $776K including a $35K franchise fee, 5.0% ongoing royalty.
- Audited total revenue FY ended Dec 31, 2024 of $14,423,330 includes food and beverage sales $7,887,593, franchise royalties $3,806,943, advertising/development fund revenue $2,231,086, rebates income $384,083, sales of franchises $112,500, and consulting revenue $1,125. Rebates/referral fees of $384,083 (2.7% of total revenue) per Item 8.
- Verdict B (Above average), verdict score 53/100 (higher is better). SBA loan charge-off rate of 4.5% across 27 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 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
Corporate structure & franchisor financials
- 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
- $14.4M
- vs $12.0M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Young R. Lee
- Headquarters
- CA
- Founded
- 1996
- FDD year
- 2025
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 34% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
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
- Top 40% of category vs category
- Liquid capital req'd
- $67K – $135K
- Middle of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · 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 | $18K |
| Renewal fee | $5K |
| Inventory (initial) | $5K – $7K |
| Total fee load | 8.0% of rev |
Financial Performance
Audited total revenue FY ended Dec 31, 2024 of $14,423,330 includes food and beverage sales $7,887,593, franchise royalties $3,806,943, advertising/development fund revenue $2,231,086, rebates income $384,083, sales of franchises $112,500, and consulting revenue $1,125. Rebates/referral fees of $384,083 (2.7% of total revenue) per Item 8.
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 8.0% (near the Full-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 -15.9% 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 Full-Service Restaurants averages
How Flame Broiler Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 125
- Opened
- 2
- Last reporting year
- Closed
- 8
- Turnover rate
- 8.1%
- Company-owned
- 14
- Corporate units in the system
- % franchised
- 89%
- vs corporate-owned
- Net growth (3-yr)
- -15.9%
- Net unit change over 3 years
- 3-yr CAGR
- -15.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 8
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 7
- Reacquired (3yr)
- 2
- Franchisor bought back
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)
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
- 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
Vintage analysis
Flame Broiler charge-off rate by loan vintage
Top lenders financing Flame Broiler franchisees
Showing 3 of 15 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 Flame Broiler's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 4.5% — 72% below the 16.0% national norm, i.e. lower 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
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 required to be disclosed in Item 3.
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: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 53 / 100 verdict
- 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
- 06MINORNo 'Going Concern' flag in FDD suggests potential financial stability issues with franchisor
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% 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 | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| 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 | State where franchised restaurant is located |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 60 hrs
- On-the-job training
- 420 hrs
- Training location
- Franchisor headquarters or designated franchisor-owned or franchised restaurant in Southern California
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor must approve
- Franchisor financing
- Not offered
- Item 10
- POS system
- Brink POS (Par Tech)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Brink POS (Par Tech)
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 B-grade franchise with a verdict score of 53 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?
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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.