Wahlburgers Franchise in 2024: Costs, Fee & FDD

Wahlburgers, a celebrated fast-casual restaurant brand, was founded in 2011 by the Wahlberg brothers—Paul, Mark, and Donnie—alongside their business partner, Bruce Greenstein. Built on the family’s passion for food and hospitality, Wahlburgers combines celebrity appeal with a commitment to delivering quality meals. With a reality TV show of the same name documenting the brand’s growth, Wahlburgers has become a cultural icon in the fast-casual dining industry, attracting loyal fans and foodies alike.

At the heart of Wahlburgers’ menu are signature gourmet burgers, made with fresh, high-quality beef, along with hand-crafted sandwiches, salads, and house-made condiments. The franchise also offers a full bar experience featuring specialty cocktails, craft beer, and wine, creating a relaxed yet upscale dining atmosphere. Wahlburgers caters to families, burger enthusiasts, and fans of the Wahlberg brand, striking a balance between casual dining and premium offerings.

Today, Wahlburgers operates over 90 locations across the U.S., Canada, Australia, and Europe, with aggressive expansion plans in both domestic and international markets. Each location serves hundreds of customers daily, offering a welcoming environment that combines great food with the personal touch of the Wahlberg family’s values. The brand has successfully created a global presence while maintaining its reputation as a neighborhood-friendly burger joint.

Franchisees benefit from Wahlburgers’ comprehensive support system, including extensive training programs, marketing assistance, and operational guidance. New owners receive hands-on training in food preparation, customer service, and restaurant management. The franchisor also provides ongoing support through local marketing campaigns, technology integration, and supply chain management. With its celebrity-backed appeal and proven business model, Wahlburgers is a compelling opportunity for entrepreneurs passionate about food and hospitality.

Wahlburgers Franchise Insights

1. Established Brand Wahlburgers, founded in 2014, has grown to 110 locations in the U.S., with 106 franchised units and four corporate locations, showcasing strong scalability.
2. Full-Service Appeal Unlike many fast-casual concepts, Wahlburgers offers a full bar experience with specialty cocktails and craft beer, increasing average ticket sizes and appealing to a broader demographic.
3. Competitive Franchise Fee At $50,000, Wahlburgers provides a competitive entry point compared to other fast-casual franchises in its category.
4. Global Expansion Potential Despite its primary U.S. focus, Wahlburgers continues exploring international growth opportunities, offering franchisees potential market expansion beyond domestic borders.
5. Unique Positioning The integration of a fast-casual dining experience with a full-service bar and celebrity branding creates an unparalleled draw for diverse customer demographics.

Wahlburgers Franchise Key indicators

How much does it cost to open a Wahlburgers franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening a Wahlburgers franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening a Wahlburgers franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Wahlburgers below from the most recent Item 7 below:

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

To open a Wahlburgers franchise, the required capital involves both the initial investment costs and a net worth requirement set by Wahlburgers. Let’s take a closer look below:

• Initial Investment As shown above, the total estimated initial investment ranges from $1,530,000 to $2,755,000. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
• Liquid Assets Typically, $500,000 to $750,000 is expected to ensure sufficient cash flow for startup expenses and initial operations.
• Net Worth A net worth between $1,500,000 and $2,500,000 is often required to meet financial stability criteria for such a substantial investment.

How much does a Wahlburgers franchise owner make?

Calculating the salary of a Wahlburgers franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Wahlburgers franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

Wahlburgers Revenue & Gross Sales

Wahlburgers has positioned itself as a popular fast-casual dining franchise with a strong focus on quality and customer experience. While specific median gross sales data is not publicly available, the brand’s steady expansion to over 100 U.S. locations demonstrates its ability to attract loyal customers and maintain consistent demand. Franchisees benefit from Wahlburgers’ established reputation and celebrity association, which help drive foot traffic and brand recognition in competitive markets. Its performance reflects a well-received business model and a menu that appeals to a diverse range of customers, from families to casual diners.

Which key factors impact the average revenue performance of Wahlburgers franchisees?

The performance of Wahlburgers franchisee sales is likely influenced by several key factors. First, the brand’s strong celebrity association with the Wahlberg family drives customer interest and enhances market visibility, which can be a significant advantage in attracting new diners. Additionally, its focus on offering high-quality, chef-inspired burgers and comfort foods appeals to a broad demographic, boosting customer loyalty and repeat visits. Strategic location placement in high-traffic urban areas and family-friendly neighborhoods further supports consistent sales performance. However, external factors such as increased competition in the fast-casual space, evolving customer dining preferences, and potential supply chain disruptions could impact year-over-year results. Franchisee commitment to marketing efforts, operational efficiency, and community engagement are also critical in driving local sales growth and maintaining competitive momentum.

Wahlburgers Franchise Operational Costs

When operating a Wahlburgers franchise, several ongoing operational costs specific to the restaurant industry should be considered:

• Labor Costs Salaries and wages for kitchen staff, servers, bartenders, and management are significant expenses, especially in areas with higher minimum wage requirements or competitive labor markets.
• Food and Beverage Inventory Regular replenishment of high-quality ingredients for the menu, including fresh produce, meats, and proprietary sauces, can be a substantial and variable cost influenced by market prices.
• Rent and Utilities Leasing a location in high-traffic areas often comes with premium rental rates, and utilities like electricity, gas, water, and internet add to the ongoing expenses.
• Equipment Maintenance Regular servicing of kitchen equipment such as grills, fryers, refrigeration units, and point-of-sale systems is necessary to ensure smooth operations and avoid costly downtime.
• Packaging and Supplies Costs for takeout packaging, utensils, napkins, and cleaning supplies to support both in-house dining and takeout/delivery operations.
• Local Marketing Beyond national advertising, franchisees often invest in localized marketing campaigns, events, and promotions to build community presence and drive customer traffic.
• Insurance Comprehensive business insurance, including liability, property, and workers’ compensation, is essential for protecting the business from potential risks.

These costs will vary depending on location, sales volume, and operational efficiency, so budgeting and expense management are critical for sustained profitability.

Wahlburgers Franchise Fees

Understanding the ongoing fees associated with a Wahlburgers franchise is essential for planning and maintaining profitability. Here are the key fees to consider:

• Royalty Fee Franchisees are required to pay 6% of their fiscal period gross sales. This fee supports the franchisor’s operational guidance and brand consistency.
• Brand Fund Contribution A 1% contribution of gross sales is required for advertising. Additionally, franchisees must allocate up to 4% of gross sales toward advertising obligations, which may include local marketing, a regional fund, or a brand fund.
• Additional Fees Other costs, such as technology upgrades, training fees, or compliance costs, may apply based on specific needs outlined in the Franchise Disclosure Document (FDD).

By accounting for these fees, franchisees can better understand their financial commitments and plan effectively for long-term success.

Wahlburgers Franchise Earnings

Wahlburgers’ performance as a fast-casual dining franchise reflects its focus on high-quality menu offerings, a strong brand presence, and its appeal to diverse customer demographics. While specific median gross sales figures are not publicly disclosed, the franchise operates in a competitive industry where factors such as location, menu pricing, and customer loyalty can significantly influence revenue. Franchisees who effectively manage costs and maximize customer retention often see robust financial outcomes, particularly in locations with high foot traffic and strong brand recognition.

Owner-operator earnings are influenced by gross sales minus key operational expenses such as food costs, labor, rent, and utilities. Wahlburgers’ premium brand positioning allows franchisees to command higher menu prices, which can contribute to profitability. However, with an initial investment range of $1.5 million to $2.75 million, careful financial planning and diligent operational management are critical to achieving a strong return on investment. Franchisees should review comparable locations and speak with existing operators to gain a clearer picture of earning potential.

How to Open a Wahlburgers Franchise

Becoming a Wahlburgers franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation. However, it offers the potential for a lucrative business opportunity backed by a globally recognized brand and comprehensive support system.

The full process for how to open a Wahlburgers franchise is outlined below:

1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
2. Preliminary Application Complete a franchise application to provide information about your financial qualifications, business experience, and interest in Wahlburgers. This step allows the franchisor to evaluate your suitability as a potential franchisee.
3. Discovery Call Participate in an initial call with the franchise development team. This is your opportunity to ask questions about the business model, operational expectations, and support provided by the franchisor.
4. Discovery Day Attend Discovery Day at Wahlburgers’ headquarters or a corporate location. Here, you’ll meet the corporate team, tour a restaurant, and gain a deeper understanding of daily operations, training programs, and franchise support.
5. Financial Review and Approval Demonstrate your financial readiness to meet the total investment range of $1.53 million to $2.75 million. This includes verifying liquid assets, net worth, and financing options to ensure you can sustain the business during its early stages.
6. Franchise Agreement Signing Once approved, you’ll sign the franchise agreement, officially securing the rights to open a Wahlburgers location. At this stage, you’ll pay the franchise fee of $50,000 and begin preparing for the next steps.
7. Training and Onboarding Complete Wahlburgers’ comprehensive training program, which includes operational procedures, marketing strategies, and customer service standards. Training is designed to equip you with the knowledge and tools needed to run the restaurant successfully.
8. Site Selection and Build-Out Work with the franchisor to identify an ideal location and oversee the build-out process. This includes lease negotiations, restaurant design, kitchen setup, and ensuring the site meets Wahlburgers’ branding standards.
9. Pre-Opening Marketing and Hiring Develop a local marketing campaign to create buzz ahead of the grand opening. Simultaneously, recruit and train staff to deliver the exceptional customer experience Wahlburgers is known for.
10. Grand Opening and Operations Begin Host a grand opening event to introduce your Wahlburgers location to the community. From this point, operations begin, supported by the franchisor’s ongoing guidance, marketing assistance, and operational tools.

Pros & Cons

Pros

Strong Brand Recognition: Wahlburgers benefits from its connection to the Wahlberg family, providing a built-in loyal customer base and strong marketing appeal.

Premium Fast-Casual Experience: The franchise’s high-quality menu and focus on fresh, locally-sourced ingredients position it well in the growing fast-casual market.

High Revenue Potential: Wahlburgers’ focus on creating memorable dining experiences and its celebrity-backed appeal make it a draw for high-traffic locations.

Growing Industry: The fast-casual segment continues to thrive, offering strong demand and growth opportunities for innovative concepts like Wahlburgers.

Cons

High Initial Investment: The total investment range of $1.53 million to $2.75 million may be a barrier for prospective franchisees, particularly in high-cost markets.

Intense Competition: The fast-casual burger market is saturated with well-established competitors like Shake Shack, Five Guys, and Smashburger, requiring strategic differentiation.

Operational Complexity: Running a full-service fast-casual restaurant with a bar component can be demanding in terms of staffing, inventory management, and day-to-day operations.

No Financial Transparency in FDD: The absence of an Item 19 in the Franchise Disclosure Document makes it difficult to assess earnings potential and financial performance.