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Defined Investment Range
Total initial investment estimated at $1,239,500 to $2,255,500, covering build-out, equipment, and three months working capital.
Structured Fee Schedule
Initial franchise fee of $40,000, 5.5% royalty on gross sales, 2.25% marketing fund contribution.
Comprehensive Training
At least six weeks initial training for up to four persons, plus grand opening support for first two restaurants.
About Smashburger
Smashburger Franchising LLC offers franchises to operate Smashburger restaurants featuring gourmet burgers, sandwiches, salads, shakes, and beverages in casual atmospheres. Founded in 2008 in Denver, Colorado, the franchisor is a subsidiary of Smashburger Finance LLC, wholly owned through a chain of entities by Jollibee Foods Corporation. The franchise system provides standardized procedures, specifications, and ongoing operational support.
Franchisees operate quick-service restaurants using the Smashburger system to prepare and serve smash-style burgers and complementary menu items. Operations follow franchisor standards for food quality, service, and branding in leased locations typically including drive-thru options. Support includes vendor lists, marketing programs, and technology requirements.
Smashburger Finance LLC is the direct parent of Smashburger Franchising LLC and is wholly-owned through a chain of entities by Jollibee Foods Corporation (JFC), a Philippines-based company.
The business model
How a Smashburger territory actually makes money at the unit level.
Initial Franchise Fee
$40,000 lump sum payment upon execution of franchise agreement.
Ongoing Royalties
5.5% of gross sales paid weekly.
Marketing Contributions
2.25% of gross sales to marketing fund, subject to increase up to 4%, with aggregate marketing cap at 5%.
Area Development Option
$20,000 per restaurant in development commitment, typically ranging $40,000 to $500,000.
Additional Startup Costs
Leasehold improvements $710,000 to $1,257,000; furniture, fixtures, equipment $264,000 to $458,000.
Other Recurring Fees
Transfer fee $15,000; lease review fee $1,500; music and gift card fees as incurred.
Quick facts
Initial franchise fee
$40,000
Total investment range
$1,239,500 – $2,255,500
Royalty
5.50% of gross revenue
Marketing fund
2.25% of gross revenue
Founded
2008
Headquarters
Denver, CO
Active US franchisees
n/a
Total US units
n/a
Training & support
What the franchisor + parent platform provide. And what they don't.
What's provided
- +At least six weeks of initial training at franchisor-designated location, possibly virtual, for up to four persons including franchisee, operating partner, and designated manager.
- +Grand opening guidance by training team at no additional cost for first two restaurants.
- +For third or subsequent restaurants, reimbursement of grand opening training costs estimated $4,000 to $30,000.
- +Ongoing support includes system standards, vendor lists, advertising materials, and pricing guidance.
- +Required technology systems and online presence compliance.
Multi-unit growth path
Area development agreements require $20,000 fee per restaurant committed, typically $40,000 to $500,000 total. Grand opening training provided at no cost for first two restaurants; third and subsequent require reimbursement of $4,000 to $30,000. Multi-unit operators follow per-restaurant investment estimates excluding development fee.
Capital + financing paths
Most operators use one of these four paths to fund the initial investment.
Personal Equity and Assets
Franchise estimates exclude debt service; operators typically fund portion via personal capital.
Third-Party Lenders
Seek bank loans or equipment financing for FF&E $264,000-$458,000 and improvements.
SBA Loans
Common for QSR franchises; covers working capital and startup costs over three months.
Landlord Allowances
Estimates exclude tenant improvements allowances negotiated with landlords.
Process timeline: inquiry → grand opening
Typical 12-16 week path from first call to launching your first customer route.
Week 1: Inquiry and Application
Submit inquiry, review preliminary qualifications, receive FDD for initial franchise fee of $40,000.
Weeks 2-4: Due Diligence
Analyze FDD Items 5-7, including $1,239,500 to $2,255,500 investment range; conduct discovery calls.
Weeks 5-8: Site Selection and Approval
Identify sites, submit leases for $1,500 review fee approval, secure landlord arrangements.
Weeks 9-14: Build-Out and Training
Commence leasehold improvements $710,000+, procure equipment; complete six weeks initial training.
Weeks 15-18: Pre-Opening Setup
Install signage $25,000-$60,000, technology $40,000-$50,000; stock inventory, hire staff.
Week 19: Grand Opening
Launch with franchisor grand opening guidance, advertising $10,000-$15,000.
Find out in 60 seconds
Are you a Smashburger match?
12 questions. Math-first. No high-pressure sales call afterwards. Just your fit-score and the reasoning behind it.
Take the assessmentCommon questions
How much does a Smashburger franchise cost?
Initial franchise fee is $40,000. Total initial investment ranges $1,239,500 to $2,255,500.
What is the Smashburger franchise fee?
$40,000 paid lump sum on execution, non-refundable.
What are Smashburger ongoing fees?
5.5% royalty on gross sales; 2.25% marketing fund, up to 4%; additional music, gift card, and tech fees.
Smashburger franchise initial investment breakdown?
Includes $710,000-$1,257,000 leasehold improvements, $264,000-$458,000 FF&E, three months rent and working capital.
Does Smashburger provide financing?
No direct financing offered; estimates exclude debt service and tenant allowances.
What training does Smashburger provide?
Six weeks initial training for up to four persons; grand opening support free for first two units.
Smashburger vs Five Guys franchise?
Smashburger initial fee $40,000, investment $1.24M-$2.26M, 5.5% royalty; Five Guys details vary by FDD.
Smashburger multi-unit franchise opportunities?
Area development fees $20,000 per unit, typically $40,000-$500,000; per-unit investments apply.
Is there Smashburger Item 19 financial performance?
No financial performance representations made in FDD.
Smashburger franchise requirements?
Qualified net worth and liquidity per FDD; technology systems, lease approval, training completion required.