Smashburger®
What Is Smashburger?
Smashburger is a casual restaurant franchise featuring a menu of gourmet burgers, sandwiches, salads, shakes, floats, and other beverages. Franchise operations may include the sale of alcoholic beverages (wine and beer) subject to local liquor licensing, and the franchisor may authorize alternative formats including Special Venue Restaurants such as kiosks, mobile facilities, and locations within larger venues (for example, colleges/universities, convention centers, airports, hotels, sports facilities, theme parks, hospitals, transportation facilities, and convenience stores).
Smashburger Franchise: Pros and Cons
The franchisor provides 269 hours of initial training (Training & Support Score: 100), far above typical, which accelerates operator readiness and shortens the learning curve. However, a maximum $500,000 franchise fee (in the top 5% for Food & Beverage) can significantly increase upfront capital requirements.
Pros
Cons
Lawsuits & Legal Risk
Smashburger faced a class action alleging misleading advertising for the Triple Double Burger, resolved via settlement in 2023 (paid $2.5M plus voucher option) without admission of liability. Due diligence: review advertising approval processes, product/warranty language, franchisee indemnity and advertising-fund obligations, Item 3 disclosures, and consult franchise counsel.
Territory Protection
Smashburger grants a protected, non-exclusive Development Area under a Multi-Unit Development Agreement, with protections contingent on meeting agreed performance quotas and site-opening deadlines. The franchisor retains rights to develop nearby units (no first refusal), sell via e-commerce/alternative channels, operate special-venue or retail locations, use different trademarks, acquire/convert units, and approve relocations.
Training & Support
The brand provides an extensive 269-hour training curriculum designed to prepare four individuals included in the initial franchise fee for launch. The program includes on-site launch assistance for operational readiness; franchisees are responsible for travel and living expenses, and additional fees apply for on-site support.
Franchisee Stability
Smashburger receives a Normal Stability Score. Three-year turnover of 9.23% sits above the typical Food & Beverage franchise (around 5%), putting the brand closer to the high end of the industry range and above the median performer. Out of 25 total exits across the three reported years, ceased operations dominated with 23, alongside 2 franchisor buybacks and no terminations or non-renewals.
The dominance of ceased operations suggests location-level economics drove most closures. This often reflects site-level challenges such as weak sales, lease pressures, and tougher local competition rather than franchisor-initiated enforcement. Prospective buyers should examine where closures clustered, recent unit transfers or sales, and common lease terms for affected territories. Also ask the franchisor for context on the buybacks and what support, if any, was offered to struggling operators. For prospective franchisees, retention is in line with industry peers.
How Much Does It Cost to Open a Smashburger Franchise?
Opening a Smashburger franchise requires a total initial investment of $40,000 to $500,000, according to the 2024 Franchise Disclosure Document. This range covers the franchise fee, real estate, equipment, training, and initial working capital needed to launch and operate through the early months.
Minimum Investment
Maximum Investment
Minimum Investment Breakdown
Maximum Investment Breakdown
Investment Analysis
This investment analysis is coming soon. Have ideas for other analyses you'd like us to add? Get in touch.
The initial investment amounts shown are estimates only. Actual costs may vary based on location size, business model, and multi-unit ownership arrangements. We recommend reviewing the full Franchise Disclosure Document for complete details.
Smashburger Franchise Earnings: Not Disclosed
Smashburger did not disclose financial performance data (Item 19) in their 2024 Franchise Disclosure Document. Not all franchisors choose to publish this information, which can make it harder for prospective owners to evaluate expected revenue before investing.
This franchise company did not publish these results.
Frequently Asked Questions
Is Smashburger a good franchise to own?
Whether Smashburger is a good franchise depends on your goals, experience, and local market. Key factors from the 2024 FDD: Smashburger operates 210 locations, received a legal risk score of 80/100, a training and support score of 100/100. The franchisor does not disclose financial performance data. Prospective franchisees should review the full Franchise Disclosure Document and consult with a franchise attorney before making any investment decision.
Is a Smashburger franchise worth the investment?
The value of a Smashburger franchise investment depends on factors such as location, operator experience, and market demand. The initial investment ranges from $40,000 to $500,000. Franchise investments carry inherent risk, and prospective buyers should conduct thorough due diligence before committing capital.
How long does it take to break even with a Smashburger franchise?
Break-even timelines for Smashburger franchises are not disclosed in the 2024 Franchise Disclosure Document. Break-even periods vary significantly based on initial investment level, local market conditions, operating costs, and revenue ramp-up speed. Prospective franchisees should build a pro forma financial model using Item 7 cost estimates and, where available, Item 19 financial performance data from the FDD.
Is Smashburger a franchise or a corporate-owned business?
As of the 2024 FDD, Smashburger operates 78 franchised locations and 133 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.
Does Smashburger disclose franchise revenue data?
Smashburger did not disclose financial performance data (Item 19) in their 2024 FDD. Not all franchisors choose to publish this information.
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