Fatburger Troubles lead to an Opportunity for QSR Experienced Operators

Following along on our recent series of posts regarding franchises and bankruptcy, we share some news about Fatburger.  Fatburger is a chain QSRs that serves up juicy burgers and fries with a fun vibe.  Corporate locations in California and Nevada have been struggling since at least 2009, when two of Fatburger’s subsidiaries filed for bankruptcy protection.  Just recently, as part of the restructuring efforts, 26 of the California and Nevada locations are up for sale through National Franchise Sales.  What does this mean if you are interested.  Well, number one, are you an experienced QSR operator?  Number two, can you close quickly and come up with sufficient capital?  If, you answer yes to both questions, then you have a good shot at picking up one or more locations.  The likely preference for the restructuring efforts are to have the stores sold as packages to minimize the number of moving parts and to have the quickest resolution possible.  If the Fatburger business model is a concept that you believe in financially, then the key factor in analyzing the locations for sale, as always, is to make sure that the occupancy costs are reasonable enough to yield an EBITDA that delivers the needed ROI for your investment.

Demonstrating Fatburger’s cultural popularity is the fact that Fatburger has celebrity franchisees in Kanye West, Queen Latifah and Montel Williams.

For More information on how Just Elementary, Inc. can help you with Franchising, email cs@justelementary.com or call (323) 213-9193