FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Smashburger using its latest 2026 FDD coverage.
Based on 2026 FDD · 8 filings in corpus · Latest FDD: 2026
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Smashburger franchise shows an estimated initial investment of $315K – $683K. Reported owner economics show $62K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $35K franchise fee · 7% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Smashburger requires a total initial investment of $315K to $683K (midpoint approximately $499K), with an initial franchise fee of $35K. The ongoing fee burden is 7% (6% royalty plus 1% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.
According to Item 19 of the 2026 FDD, the median revenue for Smashburger locations is $1.0M. The implied franchisee EBITDA is approximately $62K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 12.4% with a payback period of approximately 8.1 years.
Smashburger operates approximately 0 franchised units. The SBA 7(a) loan default rate of 20.0% is above the franchise industry average of approximately 9.4%, suggesting elevated financial risk for franchisees relying on debt financing.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2026 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2011-2024). 13 loans across 9 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Common questions buyers ask about Smashburger, answered from FDD and SBA data.
The total initial investment for a Smashburger franchise ranges from $315K to $683K, according to their Franchise Disclosure Document.
Smashburger charges a 6% royalty fee on gross sales.
The initial franchise fee for Smashburger is $35,000.
There are approximately 0 Smashburger franchise locations as of 2023.
The median revenue for a Smashburger franchise is $1.0M, with a cash-on-cash return of 12.4%, according to FDD Item 19 data.
Smashburger has an SBA loan default rate of 20.0% based on SBA 7(a) loan data.
Whether a Smashburger franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.
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