What Are Operating Procedures of Flame Broiler Franchise
Curious about how the Flame Broiler franchise operates and what it takes to become a franchisee? Discover the essential steps and investment considerations to help you make an informed decision about this popular fast-casual concept. Explore the details of this opportunity and find out if it aligns with your entrepreneurial goals by reviewing our comprehensive Flame Broiler Franchise Business Plan Template.
| # | Operating Procedure | Description |
| 1 | Food Preparation & Quality Control | Adherence to precise recipes and cooking methods ensures consistent taste and quality across all units. This includes strict temperature controls and designated preparation zones to maintain food safety and product integrity. |
| 2 | Customer Service Standards | Franchisees are trained to deliver friendly and efficient service, focusing on order accuracy and timely meal delivery. This customer-centric approach aims to foster loyalty and positive word-of-mouth referrals. |
| 3 | Inventory Management | Implementing just-in-time inventory practices and waste reduction strategies are crucial for controlling costs and maximizing profitability. This involves regular stock checks and ordering based on sales forecasts to minimize spoilage. |
| 4 | Store Cleanliness & Maintenance | Maintaining a spotless environment, from dining areas to kitchens, is a non-negotiable operational standard. Regular deep cleaning schedules and daily upkeep are essential to meet health codes and brand expectations. |
| 5 | Point of Sale (POS) System Utilization | Accurate and efficient use of the POS system is vital for sales tracking, inventory updates, and customer data collection. Proper training on the POS ensures smooth transactions and valuable business insights. |
Operating Procedure For Marketing And Brand Promotion
How is the 2% national marketing fee utilized?
The 2% national marketing fee is pooled into a brand fund managed by the franchisor to execute broad-based marketing and advertising campaigns. As of 2025, a significant portion, approximately 40% of this fund, is allocated to digital advertising, including social media marketing, search engine marketing (SEM), and influencer collaborations.
The fund also covers the creation of professional marketing assets, such as television and radio commercials, print ad templates, and promotional materials that are made available to all franchisees. This ensures brand consistency across all markets. A smaller portion, around 15% of the fund, is dedicated to public relations efforts and brand-level partnerships to increase the overall visibility and positive perception of the Flame Broiler franchise brand nationwide.
What are the local store marketing requirements?
Franchisees are required by the franchise agreement to spend a minimum of 1% of their gross sales on local marketing initiatives. This ensures that each location is actively promoting itself within its immediate community.
The franchisor provides a local marketing toolkit with approved strategies and materials, but franchisees have the flexibility to choose tactics that best suit their market. Common activities include sponsoring local sports teams, direct mail campaigns, community event participation, and geo-targeted social media ads. For a new store's grand opening, franchisees are required to spend a specified amount, typically between $7,500 and $15,000, on a comprehensive marketing blitz in the 30 days prior to and 60 days following the opening to build initial traffic and awareness.
Operating Procedure For Financial Performance And Profitability
What are the average earnings for a Flame Broiler franchise?
While Flame Broiler does not publish an official earnings claim, Item 19 of their 2024 Franchise Disclosure Document (FDD) provides historical financial performance representations for a subset of their franchised outlets. Prospective franchisees must carefully review this document to understand potential revenue.
Based on available FDD data and industry analysis, the average gross sales for a mature Flame Broiler location in 2024 were reported to be in the range of $850,000 to $1,100,000. However, performance varies significantly based on location, management, and local economic factors.
The average earnings for a Flame Broiler franchise owner, after all expenses, are not publicly disclosed, but franchisees can project potential net income by analyzing the sales data in the FDD against their estimated operating costs.
What are the typical Flame Broiler franchise profit margins?
Flame Broiler franchise profit margins are influenced by factors like cost of goods sold (COGS), labor costs, rent, and the 8% total royalty and marketing fees. The brand's simple menu and operational model are designed to help control these costs.
As of early 2025, the target COGS for a well-managed location is approximately 28-32% of sales, while labor costs are targeted at 25-29% of sales. These are key benchmarks for maximizing profitability.
After accounting for all operating expenses, including rent and fees, the net profit margin for an average-performing unit is estimated to fall within the fast-casual industry standard of 10-15%. Top-performing franchisees who effectively manage labor and food costs may exceed this range.
Key Takeaways
- The Flame Broiler operates on a quick-service restaurant (QSR) model, focusing on healthy, Korean-inspired rice bowls with a simple, clean menu that avoids frying, trans-fats, and dairy, appealing to a health-conscious demographic.
- The total estimated initial investment for a Flame Broiler franchise ranges from $370,116 to $599,763, with the initial franchise fee being $25,000.
- Ongoing fees include a 5% royalty fee and a 3% national marketing fee on gross sales, totaling 8% in combined fees for franchisees.
- Financial requirements for potential franchisees include a minimum of $62,980 - $125,000 in cash and a net worth of $500,000 - $1,000,000 per location.
- The franchise application process involves initial inquiry, a detailed application, discovery calls, FDD review, and a discovery day, typically taking 60 to 120 days before agreement signing, followed by a 6-12 month site selection and build-out period.
- Flame Broiler provides support in site selection, offering demographic analysis and specific site criteria, though franchisees are responsible for securing the lease and managing the build-out with approved architects and contractors.
- A comprehensive 4-week training program is mandatory for franchisees and their managers, covering all operational aspects, with additional ongoing support provided through business consultants, operational manuals, and marketing resources.
What Is The Flame Broiler Business Model?
How does the Flame Broiler franchise business model operate?
The Flame Broiler franchise business model is built around a quick-service restaurant (QSR) concept that focuses on healthy, Korean-inspired rice bowls. The core of their offering is charbroiled meats and vegetables, with a commitment to avoiding trans-fats, dairy, frying, and skin. This 'simple, clean, and good for you' approach has been central to the brand since its inception in 1995, drawing in a health-conscious clientele.
Operational simplicity is a key tenet of this business model. With a limited and focused menu, kitchen processes are streamlined, which helps to reduce food waste. Projections suggest food waste can be kept to around 15% of food costs. This also lowers the overhead associated with training new employees.
The model is designed for scalability. As of early 2025, the franchise has a significant presence with over 180 locations, primarily concentrated in states like California, Arizona, Florida, Nevada, and Oklahoma. Franchisees can leverage a well-established system, existing brand recognition, and a business that taps into the growing consumer demand for healthy fast-casual dining. This market segment is anticipated to grow by approximately 65% annually through 2028.
What are the pros and cons of a Flame Broiler franchise?
One of the primary advantages of a Flame Broiler franchise opportunity is its strong positioning within the healthy QSR market. The operational model is straightforward, and the initial investment is often lower compared to many other fast-casual franchises. Key benefits include a focused menu that simplifies operations, strong brand loyalty among its customer base, and a business philosophy that aligns with contemporary consumer values regarding health and wellness.
However, there are potential drawbacks to consider. The brand's presence is currently geographically concentrated, which might mean lower brand recognition in markets where it is less established. Franchisees should also be aware of the ongoing costs associated with royalty and marketing fees. The royalty fee is typically 5% of gross sales, and the marketing fee is 3%. These are significant ongoing operational expenses that require careful financial planning to ensure healthy profit margins.
Competition is another factor. Franchisees will encounter competition from other healthy QSR chains as well as the broader fast-casual dining sector. For new franchisees entering developing territories, there might be a need for increased investment in local marketing efforts to build a customer base. An estimated initial local marketing spend of $5,000 to $10,000 in the first three months of operation is a realistic expectation.
Tips for Aspiring Franchisees
- Understand the Fees: Be sure to factor in the 5% royalty fee and 3% marketing fee into your financial projections. These are ongoing costs that impact your bottom line.
- Market Research: While the brand has a strong health focus, research your specific territory to understand local competition and consumer preferences.
- Operational Efficiency: The simple menu is a strength. Focus on mastering the operational flow to ensure speed and quality, which are crucial in the QSR segment.
For those looking into franchise options, understanding the specific financial commitments is crucial. The estimated initial investment for a Flame Broiler franchise can range from $370,116 to $599,763. This includes an initial franchise fee of $25,000. Required liquid cash can be between $62,980 and $125,000, with a net worth requirement of $500,000 to $1,000,000.
In terms of financial performance, the median annual revenue per unit is reported at $505,174, with the lowest at $192,021 and the highest at $772,127. The cost of goods sold (COGS) averages around 40.5% of revenue, leading to a gross profit margin of about 59.5%. While operating expenses can be substantial, many franchisees aim for breakeven within 12 months and investment payback within 24 months. For those considering their options, exploring What Are Some Alternatives to the Flame Broiler Franchise? can provide valuable context.
How Much Does It Cost To Invest In Flame Broiler?
When considering a Flame Broiler franchise opportunity, understanding the financial commitment is paramount. The initial investment for a Flame Broiler franchise can vary, but the Franchise Disclosure Document (FDD) provides a clear range. As per the latest FDD data, the low initial investment is approximately $370,116, while the high initial investment can reach up to $599,763.
What is the total investment for a Flame Broiler franchise?
This investment range encompasses several key components. The initial franchise fee for a Flame Broiler franchise is $25,000. Beyond this fee, significant capital is allocated to build-out and operational readiness. Leasehold improvements are estimated to fall between $150,000 and $350,000, and the cost for equipment, fixtures, and furniture is projected to be between $100,000 and $150,000. It's also critical to have sufficient operating capital; the FDD suggests budgeting for at least three months of expenses, with an estimated range of $25,000 to $50,000 to ensure smooth initial operations before reaching profitability.
What are the ongoing Flame Broiler franchise fees?
As a franchisee, you'll have ongoing financial obligations to the franchisor. These typically include royalty fees and marketing contributions. For a Flame Broiler franchise, the current royalty fee is 5% of the restaurant's weekly gross sales. Additionally, there's a national marketing fund contribution set at 3% of weekly gross sales, which supports broader brand advertising and marketing initiatives. Franchisees are also required to invest in local store marketing, with a minimum of 1% of gross sales dedicated to these efforts. This brings the total ongoing commitment for royalties and marketing to 8% of gross sales.
Key Considerations for Your Flame Broiler Franchise Investment
- Understand the FDD: Always thoroughly review the Franchise Disclosure Document (FDD) provided by the franchisor. It contains the most up-to-date and detailed financial information.
- Capital Requirements: Ensure you have access to the necessary cash and net worth. The FDD indicates a required cash of $62,980 - $125,000 and a net worth requirement of $500,000 - $1,000,000.
- Contingency Planning: Factor in potential cost overruns and ensure you have a buffer for unexpected expenses during the setup phase and initial operation.
For those looking to delve deeper into the earning potential and operational performance of a franchise, exploring How Much Does a Flame Broiler Franchise Owner Make? can provide valuable insights into the financial landscape of this franchise Flame Broiler opportunity.
What Are The Flame Broiler Franchise Requirements?
What financial qualifications are needed to open a Flame Broiler?
To pursue a Flame Broiler franchise opportunity, candidates are typically required to meet specific financial benchmarks. A key requirement is a minimum net worth of $500,000 to $1,000,000 per location a franchisee intends to develop. This ensures a solid financial foundation to support the venture. Additionally, prospective franchisees must demonstrate having a minimum of $62,980 to $125,000 in liquid capital. This liquidity is crucial for covering initial investment costs, including the franchise fee, which is $25,000, without relying heavily on borrowed funds.
These financial thresholds are rigorously assessed during the Flame Broiler franchise application process. The franchisor uses this information to gauge a candidate's capacity to fund the startup and navigate the initial operating period. Understanding the full investment range, from a low of $370,116 to a high of $599,763, is essential for anyone looking to invest in a Flame Broiler franchise. For a detailed breakdown of these costs, you can explore How Much Does a Flame Broiler Franchise Cost?
Are there specific experience requirements for franchisees?
While direct restaurant management experience is highly preferred for a Flame Broiler franchise, it is not always a strict requirement. The company places significant value on candidates possessing strong business acumen, effective leadership skills, and a genuine passion for the brand's healthy food philosophy. The ideal profile for a franchise Flame Broiler owner includes individuals with prior management experience, a proven history of leading teams successfully, and excellent customer service abilities. The franchisor actively seeks owner-operators who are committed to being hands-on with their business.
Regardless of their professional background, all new franchisees must successfully complete the comprehensive Flame Broiler franchise training program. This mandatory program is meticulously designed to equip owners with the in-depth operational knowledge required to manage their restaurant in strict adherence to brand standards. This commitment to training is a cornerstone of the Flame Broiler franchise business model, ensuring consistency and quality across all locations.
Tips for Aspiring Franchisees
- Financial Preparedness: Ensure your liquid capital and net worth comfortably exceed the stated requirements to account for unforeseen expenses during the initial phase.
- Business Acumen: Highlight any experience in management, operations, or customer service, even if not directly in the food industry, as these are transferable skills.
- Brand Alignment: Demonstrate a clear understanding and appreciation for the brand's mission and values, particularly its focus on healthy food.
Operating Procedure To Start A Flame Broiler Franchise
What are the steps to becoming a Flame Broiler franchisee?
Embarking on the journey to open a Flame Broiler franchise begins with a straightforward yet crucial first step: completing and submitting the initial inquiry form available on the company's dedicated franchising website. This action officially kicks off the Flame Broiler franchise application process, setting the stage for what's to come.
Following a successful initial review of your inquiry, you'll engage in a series of discovery calls with the franchise development team. During this phase, you'll thoroughly review the Franchise Disclosure Document (FDD), which contains vital information about the franchise system, and begin crafting a comprehensive business plan. This stage is also where you'll have detailed discussions about available Flame Broiler franchise territories and engage in essential financial planning.
The culmination of the process involves attending a 'Discovery Day' at the corporate headquarters in Southern California. This immersive experience provides firsthand insight into the brand's operations. Upon receiving franchise approval, you'll proceed to sign the Flame Broiler franchise agreement details and submit the initial franchise fee, officially making you a Flame Broiler franchisee.
How long does the application process take?
The entire process, from submitting your initial inquiry to signing the franchise agreement, typically spans between 60 to 120 days. This timeline can fluctuate based on your promptness in providing information and the thoroughness of the background checks conducted on your financial and business history.
It's important to note that the Franchise Disclosure Document (FDD) review period includes a legally mandated 14-day waiting period before any contracts can be signed or fees exchanged. This period is designed to ensure you have ample time for due diligence.
Once the franchise agreement is signed, the subsequent site selection and build-out phase commences. This can extend for an additional 6 to 12 months before the restaurant's grand opening, contingent upon real estate availability and the complexity of construction timelines.
| Initial Investment Range: | $370,116 - $599,763 |
| Franchise Fee: | $25,000 |
| Royalty Fee: | 5% of revenue |
| Marketing Fee: | 3% of revenue |
| Cash Required: | $62,980 - $125,000 |
| Net Worth Requirement: | $500,000 - $1,000,000 |
Key Considerations for Aspiring Franchisees
- Financial Readiness: Ensure you meet the net worth and cash requirements. The initial investment for a Flame Broiler franchise ranges from $370,116 to $599,763, with a required cash reserve of $62,980 to $125,000.
- Due Diligence: Allocate the full 14-day FDD review period to thoroughly understand the franchise agreement and operational expectations.
- Market Research: Investigate available Flame Broiler franchise territories to identify the most promising locations for your business.
For those looking to understand potential earnings, exploring How Much Does a Flame Broiler Franchise Owner Make? can provide valuable insights.
| Breakeven Time: | 12 Months |
| Investment Payback: | 24 Months |
| Average Annual Revenue per Unit: | $505,174 |
| Median Annual Revenue per Unit: | $505,174 |
| Lowest Annual Revenue per Unit: | $192,021 |
| Highest Annual Revenue per Unit: | $772,127 |
Operating Procedure For Site Selection And Build-Out
How does the franchise assist with real estate?
When considering a franchise Flame Broiler opportunity, real estate is a critical first step. The franchisor offers substantial support here, giving you access to their seasoned real estate team and a well-established network of preferred brokers. This partnership is invaluable for identifying optimal locations. They provide detailed demographic analysis and traffic pattern data, which are essential for making informed decisions about market entry. As of 2025, there's a strategic focus on expanding into suburban markets in states like Texas, Florida, and Georgia, indicating areas ripe for growth for a new franchise Flame Broiler.
The franchise has specific site criteria, generally looking for spaces between 1,200 to 1,600 square feet. Ideal spots often include high-traffic retail centers, particularly end-cap locations that might offer patio seating potential, or standalone buildings. While the franchisor guides and approves the chosen site, the ultimate responsibility for securing the lease or purchase lies with the franchisee. It's important to remember that franchisor approval is a mandatory step before any lease agreement is finalized.
What does the restaurant construction phase involve?
Once a suitable location is secured for your Flame Broiler franchise, the next phase involves the build-out. Franchisees collaborate with architects and general contractors approved by the franchisor to manage this process. You'll receive standardized restaurant designs and floor plans from the franchisor, which can be adapted to fit the specific characteristics of your chosen site. This ensures brand consistency across all locations.
The construction and build-out process, encompassing everything from interior finishing to the installation of kitchen equipment and signage, typically falls within an estimated cost range of $150,000 to $350,000. This is often the most variable component of the total initial investment required to invest in Flame Broiler. To ensure adherence to brand standards and keep the project on schedule for a projected opening date, the corporate team provides regular site visits and project management support throughout the build-out.
Tips for Site Selection and Build-Out
- Leverage franchisor expertise: Utilize the franchisor's real estate team and broker network to their fullest. Their data and experience can significantly reduce the risk of choosing a suboptimal location.
- Understand site criteria: Be clear on the franchisor's preferred location types (e.g., end-cap, high-traffic centers) and square footage requirements to streamline your search.
- Budget accurately for build-out: The $150,000 to $350,000 range for construction is substantial. Factor this into your overall financial planning for the Flame Broiler franchise cost.
- Stay in communication during construction: Regular check-ins with the franchisor's project management team will ensure your build-out aligns with their standards and timeline.
Understanding these operating procedures is a key part of the How to Start a Flame Broiler Franchise in 7 Steps: Checklist. The initial investment for a Flame Broiler franchise can range from $370,116 to $599,763, with the build-out being a significant portion of this. The franchise fee itself is $25,000, with ongoing royalty fees at 5% and marketing fees at 3% of revenue. To qualify, you'll typically need between $62,980 to $125,000 in cash and a net worth of $500,000 to $1,000,000.
| Site Criteria | Estimated Build-Out Cost |
| 1,200 - 1,600 sq ft | $150,000 - $350,000 |
| High-traffic retail centers | Focus on brand standards |
| End-cap with patio potential | Franchisor-approved architects |
Operating Procedure For Franchisee Training And Support
What is included in the Flame Broiler franchise training program?
When you decide to invest in a Flame Broiler franchise opportunity, a crucial part of the process is the comprehensive training program. This isn't just a quick overview; it's a mandatory, 4-week intensive program designed to equip you and your designated manager with all the necessary skills. The training takes place at a certified training restaurant and then moves to the corporate headquarters in Irvine, California. This dual location approach ensures you get both hands-on experience and in-depth theoretical knowledge.
The curriculum covers every facet of running a successful franchise Flame Broiler unit. You’ll spend 40 hours in classroom instruction and over 120 hours engaged in on-the-job training. Key areas include mastering food preparation techniques, adhering to strict customer service protocols, efficient inventory management, proficiency with the Point of Sale (POS) system, and developing effective local marketing strategies. This thorough preparation is vital for ensuring consistency and quality across all Flame Broiler locations.
There is no tuition fee for this initial training, which covers up to two individuals. However, it’s important to budget for associated travel, lodging, and meal expenses. These costs are typically estimated to range between $5,000 and $10,000 for the duration of the 4-week program.
What kind of Flame Broiler franchise support for owners is available?
The support structure for Flame Broiler franchise owners is designed to be robust and continuous. From the moment you sign on, you’ll be assigned a dedicated franchise business consultant. This consultant acts as your primary point of contact, offering guidance throughout the pre-opening phase, assisting with your grand opening, and providing ongoing operational and marketing support. This personalized attention is a significant benefit of the Flame Broiler franchise business model.
As a franchisee, you gain access to the company's proprietary operations manual, which is a comprehensive guide to all aspects of the business. You also receive access to marketing materials and benefit from the established supply chain network. This network leverages collective buying power, which can lead to savings of an estimated 5-8% on food and supplies compared to what independent operators might pay. This cost efficiency directly impacts your franchise Flame Broiler unit's profitability.
Ongoing technical support for the POS system and other in-store technology is also provided. Furthermore, the franchisor hosts regular webinars, regional meetings, and an annual conference. These events are invaluable for sharing best practices, discussing industry trends, and fostering a strong community among franchisees. This continuous engagement helps ensure that all owners are up-to-date and can learn from each other's successes and challenges. For those looking to understand potential earnings, exploring How Much Does a Flame Broiler Franchise Owner Make? can offer further insights into the financial aspects of the business.
Key Support Pillars for Franchisees
- Dedicated Franchise Business Consultant: Personalized guidance from pre-opening through ongoing operations.
- Proprietary Operations Manual & Marketing Materials: Access to established systems and branding.
- Supply Chain Network: Potential cost savings through collective purchasing power, estimated at 5-8%.
- Ongoing Technical Support: Assistance with POS and other in-store technology.
- Regular Communication & Training: Webinars, regional meetings, and annual conferences for continuous improvement and networking.
| Initial Training Duration | 4 Weeks |
| Training Locations | Certified Training Restaurant & Corporate HQ (Irvine, CA) |
| Training Hours (Classroom) | 40 Hours |
| Training Hours (On-the-Job) | 120+ Hours |
| Training Cost (Tuition) | $0 |
| Estimated Personal Expenses for Training | $5,000 - $10,000 |
| Franchise Fee | $25,000 |
| Royalty Fee | 5% of gross revenue |
| Marketing Fee | 3% of gross revenue |
Operating Procedure For Marketing And Brand Promotion
How is the 2% national marketing fee utilized?
The 2% national marketing fee collected from franchisees is consolidated into a central brand fund. This fund is expertly managed by the franchisor to orchestrate large-scale marketing and advertising campaigns that benefit the entire franchise network. As of 2025, a significant allocation, approximately 40% of this fund, is dedicated to robust digital advertising strategies. This includes targeted social media marketing, search engine marketing (SEM), and collaborations with relevant influencers to broaden brand reach.
Furthermore, this fund supports the creation of high-quality marketing collateral. This encompasses professional television and radio commercials, adaptable print ad templates, and various promotional materials that are then made accessible to all franchisees. This centralized approach ensures a consistent and professional brand image across all operating locations.
A portion, around 15% of the national marketing fund, is strategically invested in public relations initiatives and key brand-level partnerships. These efforts are designed to enhance the overall visibility and cultivate a positive perception of the brand nationwide, ultimately driving customer interest and loyalty.
What are the local store marketing requirements?
The franchise agreement mandates that each franchisee invest a minimum of 1% of their gross sales into local marketing activities. This requirement ensures that every location actively engages with and promotes itself within its immediate community. The franchisor provides a comprehensive local marketing toolkit, which includes a range of approved strategies and ready-to-use materials. However, franchisees are granted the flexibility to select tactics that best align with their specific market conditions and customer base. Common and effective local marketing activities include sponsoring local sports teams, executing targeted direct mail campaigns, participating in community events, and running geo-targeted social media advertisements.
For the crucial grand opening phase of a new store, franchisees are obligated to allocate a specified budget, typically ranging from $7,500 to $15,000, for a concentrated marketing blitz. This campaign is designed to run in the 30 days leading up to the opening and continue for 60 days afterward, aiming to build initial customer traffic and strong brand awareness.
Marketing Tips for Franchisees
- Leverage the National Fund: Stay informed about the national campaigns and materials provided by the franchisor. Integrate these into your local efforts to maximize brand consistency and impact.
- Community Engagement is Key: Actively participate in local events and sponsor community initiatives. This builds goodwill and makes your location a familiar and trusted part of the neighborhood.
- Data-Driven Local Efforts: Track the performance of your local marketing activities. Analyze which strategies yield the best results in your specific market and adjust your spending accordingly.
| Marketing Allocation | Percentage of National Fund |
|---|---|
| Digital Advertising (SEM, Social Media, Influencers) | 40% |
| Marketing Asset Creation (TV, Radio, Print) | 45% (Remaining 60% after digital) |
| Public Relations & Brand Partnerships | 15% |
| Local Marketing Spend | Requirement |
|---|---|
| Minimum of Gross Sales | 1% |
| Grand Opening Marketing Blitz | $7,500 - $15,000 |
Operating Procedure For Financial Performance And Profitability
What are the average earnings for a Flame Broiler franchise?
Understanding the potential financial performance is crucial when considering any franchise opportunity. For a Flame Broiler franchise, while an official earnings claim isn't published, the Franchise Disclosure Document (FDD) for 2024 offers valuable insights. Item 19 within this document provides historical financial performance representations for a selection of their franchised locations. It's imperative for prospective franchisees to thoroughly review this FDD to grasp the potential revenue figures.
Based on industry analysis and the available FDD data, the average gross sales for a mature Flame Broiler location in 2024 were estimated to be between $850,000 and $1,100,000. However, it's vital to remember that performance can vary significantly. Factors such as the specific location, the effectiveness of management, and local economic conditions all play a substantial role in a unit's success.
The average earnings for a Flame Broiler franchise owner, after accounting for all operational expenses, are not publicly disclosed. Franchisees can, however, project potential net income by carefully analyzing the sales data presented in the FDD and comparing it against their own estimated operating costs. This detailed analysis is a cornerstone of informed decision-making when you invest in Flame Broiler.
What are the typical Flame Broiler franchise profit margins?
Profit margins for a Flame Broiler franchise are shaped by several key components. These include the cost of goods sold (COGS), labor expenses, rent, and the combined royalty and marketing fees, which total 8%. The brand's straightforward menu and streamlined operational model are specifically designed to aid franchisees in effectively managing these costs.
As of early 2025, the target COGS for a well-managed Flame Broiler franchise location is generally between 28% and 32% of sales. Similarly, labor costs are targeted to fall within the 25% to 29% range of sales. These figures serve as critical benchmarks for maximizing profitability.
After deducting all operating expenses, such as rent and fees, the estimated net profit margin for an average-performing unit typically falls within the standard range for the fast-casual industry, which is between 10% and 15%. Franchisees who excel in managing both labor and food costs may find their profit margins exceeding this benchmark.
| Financial Metric | Amount ($) | Percentage of Revenue (%) |
| Average Annual Revenue | 505,174 | 100% |
| Cost of Goods Sold (COGS) | 204,858 | 40.5% |
| Gross Profit Margin | 300,316 | 59.5% |
| Expense Type | Annual Amount ($) |
| Rent | 193,669 |
| Employee Salaries (7 employees) | 148,800 |
| Cost of Goods Sold (COGS) | 204,858 |
Key Considerations for Profitability
- Strict Cost Control: Diligently monitor your COGS and labor expenses, as these are the most significant variable costs. Aim to keep COGS at or below 32% and labor at or below 29% of sales.
- Location Analysis: Thoroughly research potential locations. Factors like foot traffic, local competition, and demographic suitability will heavily influence your revenue potential. The How to Start a Flame Broiler Franchise in 7 Steps: Checklist can guide you through this process.
- Operational Efficiency: Optimize your daily operations to reduce waste and improve speed of service, which directly impacts profitability.
When evaluating the Flame Broiler franchise opportunity, it's important to look at the initial investment range, which is typically between $370,116 and $599,763. This includes the initial franchise fee of $25,000. Prospective franchisees will also need a minimum of $62,980 to $125,000 in cash on hand and a net worth requirement ranging from $500,000 to $1,000,000.
The royalty fee for a new unit is 5%, with an additional 3% for the marketing fund. Industry data suggests that breakeven can be achieved within 12 months, with investment payback anticipated around 24 months, indicating a potentially robust business model for those who manage their operations effectively.