Fuddruckers Restaurant Franchise
Freddie Fuddruckers was the original name when Philip J. Romano founded the restaurant in San Antonio, Texas in 1979. The first location was an old bank that he converted to a restaurant and he opened the company because he believed the world needed a better hamburger. By 1988 there were 150 restaurants in the chain and this is also want Romano left the chain to found Romano’s Macaroni Grill. He claimed he had done everything he could for the Fuddruckers at this time and was ready to move on. The company was purchased in 1998 by Michael Cannon and later by Magic Brands. They filed for bankruptcy in April of 2010 and sold most of the assets they owned. Fuddruckers was sold to Tavistock Group for $40 million. It was later sold that year to Luby’s Cafeterias for $61 million. They now have 56 company operated restaurants and 129 franchise stores across the United States and in a Canada a well.
Fuddruckers is best known for their Original Fudds Burger offered in the 1/3 pound. 1/2 pound, 2/3 pound, and even 1 pound size. They are primarily known for their hamburgers, but they do offer chicken options as well. The location in Foxwoods Resort Casino is responsible for creating a 29.6 pound burger that costs $250 and was known as the world’s largest commercially available burger in 2006. They brought back two of their very popular burgers in 2011 with the southwest and the Swiss melt being added back to the menu. They also introduced the Inferno burger at the same time as these two came back.
Fuddruckers offers many franchise opportunities in North America, Central America, and South America. They allow franchisees to choose between a free standing locating, an end cap location, and even some non-traditional venues as well. The estimated capital investment that is necessary to open a Fuddruckers is $400,000 and they charge a $50,000 franchise fee up front. They also charge an ongoing 5% royalty fee and a 0.25% marketing fee per unit as well.