Franchise Intel Report: Smashburger
HQ: Denver, CO | Founded: 2007 | Franchising since: 2008
Data Freshness: As of September 23, 2025, the most recent FDD available to us for this brand is 2024. If newer data has been publicly disclosed, please share it with us, and we’ll update this report immediately.
🔍 Fast Facts
Startup Cost: $570K–$1.2M
Franchise Fee: $40,000
Royalty / Marketing: 5% royalty / 2% marketing
Item 19 + AUV: ≈$900K (2024 FDD; top quartile ≈$1.2M, bottom < $700K)
U.S. Locations: ≈220 (clusters in CO, TX, Northeast; scattered elsewhere)
🧾 FDD Disclosure & Freshness
Most recent FDD we’re using: 2024 FDD (disclosed 2024)
Why this dataset: It is the latest publicly available version as of September 23, 2025. If the 2025 FDD exists but isn’t yet publicly accessible, we default to the most recent public filing to ensure consistency and verifiability.
Brand representatives: If you have more current, documented figures (AUV, quartiles, fees, unit counts, and training/support), please notify us, and we’ll publish an update note with the new numbers.
What’s Our Verdict on This Brand?
Verdict: Caution — Smashburger has foodie appeal and lower capital expenditures than its premium peers, but mid-tier sales, slowed growth, and operational inconsistencies keep it a niche play.
📊 Why the Verdict?
Built on smashed patties, premium toppings, and a “better burger” niche.
Why it matters: Positioned above QSRs but below Shake Shack, it risks being stuck in the middle.
Investor Move: 🟡 Yellow — Works only in dense, higher-income suburban/urban markets.
💸 CapEx & Fees
Startup $570K–$1.2M, with 7% combined royalty + marketing.
Why it matters: Entry is cheaper than Five Guys, but lower AUV drags ROI.
Investor Move: 🟡 Yellow — Stress-test ROI against Five Guys or Habit before committing.
📉 Financial Performance
AUV ≈$900K; quartile spread is wide.
Why it matters: Many units miss $1M, leaving thin margins under fees.
Investor Move: 🟡 Yellow — Validate quartile data with current operators in your DMA.
🚨 Red Flag Alert
Slowed U.S. expansion; closures in weaker markets
Lagging sales vs. Five Guys/Shake Shack
Limited national brand awareness
Why it matters: Signals plateau risk.
Investor Move: 🔴 Red — Only viable if the corporation shows evidence of sustainable growth in your region.
📱 What’s Driving Demand?
Premium patties, toppings, and “Smash-fries”
Smaller footprint = flexible real estate
Loyal pockets of repeat customers in select cities
Why it matters: Differentiation is real, but not universal.
Investor Move: 🟡 Yellow — Aim for foodie-heavy DMAs; avoid oversaturated burger corridors.
🔎 Public Sentiment
Customer Feedback:
“Best fast-casual burger when ops are on point.”
“Great one time, disappointing the next.”
Service and portions are inconsistent.
Employee/Insider Feedback:
Training is “adequate but rushed.”
Turnover is common; advancement is limited.
Management quality varies by location.
Why it matters: Ops inconsistency widens the AUV gap.
Investor Move: 🟡 Yellow — Validate staffing and support in your market before buying in.
💡 Training + Support
~6 weeks initial training; lighter field/marketing support than larger systems.
Why it matters: Tools exist, but require disciplined operators.
Investor Move: 🟡 Yellow — Confirm responsiveness during validation.
📊 Fees at a Glance
Franchise Fee: $40,000
Royalty Fee: 5% of sales
Marketing Fee: 2% of sales
👓 Operator Lens ROI Snapshot
Lower CapEx is attractive, but returns hinge on hitting top-quartile sales. Multi-unit scale is difficult without strong ops discipline.
💼 Investor Lens Scalability & Exit
The brand has plateaued in growth and lacks Shake Shack-style cachet. Entry costs are manageable, but exit options may be limited to single-market resales.
⬇️ Final Call
Smashburger offers an affordable entry into the better-burger space with foodie appeal and flexible real estate. However, mid-tier AUVs, slowed momentum, and operational inconsistencies make it highly situational.
Verdict: 🟡 Caution — Best fit for disciplined operators in foodie-heavy DMAs, not a turnkey multi-unit growth vehicle.
Data Note: This analysis relies on the 2024 FDD (latest publicly accessible as of September 23, 2025). Brand reps: send verified updates, and we’ll refresh this report.
