FDD Talk Daily: Average Net Sales, Food Costs, and Labor Costs of Fatburger Restaurants

Highlights of Fatburger’s Item 19 Financial Performance Representations (2012 FDD)

• The total estimated initial investment necessary to begin operation of one Fatburger Restaurant ranges from $508,600 to $878,400. This includes the initial franchisee fee that must be paid to the franchisor.

• The section below lists selected historical and unaudited financial and operating data for U.S. and Canadian franchised and affiliate-owned restaurants.

• The following restaurants are not included in this data: (1) those Restaurants which were not open for the entire 12 month period; (2) international locations other than Canada; and (3) seven franchised Restaurants for which the franchisee did not provide the sales and cost information.

Section 1 – Net Sales Data for Fatburger Restaurants

• The following data are for the one year period ending December 31, 2011 for included restaurants.

• Free-standing restaurants refer to those that are not located in a mall. In-line and endcap restaurants are located in strip malls; in-line restaurants have other businesses located on either side and endcap restaurants are located at the end of the strip mall.

Corporate Stores (1 Store)

• Total Net Sales (sales net of sales tax, rebates, and refunds):  $1,565,497

• Average Net Sales Per Restaurant (all formats):  $1,565,497

• Average Net Sales – Free-Standing Restaurants (0 stores):  $0

• Average Net Sales – In-Line and Endcap Restaurants (o stores):  $0

• Median Net Sales (all formats):  $1,565,497

Franchise Stores (46 Stores)