Smashburger is a fast-casual restaurant serving made-to-order burgers, sandwiches, and sides. The franchise combines high-quality ingredients with efficient service.
Key Insights
- Smashburger originated with a focus on elevating the classic burger experience, emphasizing fresh, never-frozen beef smashed on a grill to create a unique texture and flavor. The franchise offers a focused menu with customizable options, catering to diverse preferences, and has expanded its reach through various dining formats.
- The business operates as a fast-casual restaurant, providing a streamlined ordering and service model that balances efficiency with a quality dining experience. Its approach centers on fresh ingredients and a signature cooking method, aiming to provide a consistently high-quality product.
- The industry the franchise operates in is part of the broader quick-service and fast-casual dining sector, characterized by high demand for convenient and accessible food options. Consumer preferences continue to evolve, with an ongoing emphasis on quality ingredients and customizable meals within this competitive landscape.
Franchise Fee and Costs to Open
Exploring the financial picture of Smashburger gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $1,239,500 - $2,255,500, along with a franchise fee of $40,000 - $40,000.
Financial Performance and Revenue
Yearly gross sales of $942,421 and estimated earnings of $113,091 - $141,364 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 14.2-16.2 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Smashburger provides comprehensive training for new franchisees. This initial program, lasting approximately three weeks, is held at a designated Smashburger training facility. The franchisor offers operational guidance and resources to support business development. Smashburger recommends a multi-faceted approach to store opening and ongoing operations.
Legal Considerations
Legal considerations for a Smashburger franchisee are outlined in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Note that this franchise discloses lawsuits and/or bankruptcy information in its FDD, which may impact your evaluation. Subscribe now to access more details and be sure to consult a qualified attorney before proceeding.
Challenges and Risks
Operating a Smashburger franchise involves navigating a dynamic local market, where established competitors and emerging concepts can impact customer draw. The operational model, while standardized, requires diligent management of staff training, inventory control, and maintaining food quality consistently. Furthermore, reliance on specific ingredient suppliers and distribution networks means that disruptions in this chain can affect product availability and cost.
Franchise Datasheet
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