About FOGO DE CHAO Franchise
Fogo de Chao is an internationally acclaimed Brazilian steakhouse franchise known for its traditional churrasco style dining experience.
The brand has been franchising since 2020, backed by its parent company Fogo de Chao, Inc.
Each restaurant features a continuous tableside service of fire roasted meats carved by trained gaucho chefs, alongside an extensive salad bar, specialty sides, and a curated wine selection.
FOGO DE CHAO Franchise Cost & Fees
Minimum Investment
$2.7M
Average Investment
$4.7M
Maximum Investment
$6.7M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1.0% of Gross Sales (Marketing Fee) and 2.5% of Gross Sales (Local Advertising Requirement) | National brand fund |
| Total Investment Range | $2,665,000 – $6,720,000 | Includes build-out, inventory, working capital |
The investment range of $2.7M–$6.7M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (1.0% of Gross Sales (Marketing Fee) and 2.5% of Gross Sales (Local Advertising Requirement)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Store Franchise Fee | $50,000 | $50,000 |
| Plans | $15,000 | $25,000 |
| Leasehold Improvements | $1,000,000 | $4,000,000 |
| Architectural/Engineering/Site Evaluation | $125,000 | $250,000 |
| Furniture, Decor, and Fixtures | $150,000 | $300,000 |
| Equipment | $475,000 | $600,000 |
| Computer/POS System | $150,000 | $200,000 |
| Interior and Exterior Signage | $50,000 | $100,000 |
| Initial Inventory | $60,000 | $100,000 |
| Initial Business Supplies | $35,000 | $70,000 |
| Smallwares | $50,000 | $75,000 |
| Liquor License | $0 | $0 |
| Utility and Telephone Deposits | $0 | $0 |
| Business Licenses and Permits | $5,000 | $50,000 |
| Initial Training Costs | $100,000 | $150,000 |
| Opening Team Costs | $150,000 | $200,000 |
| Advertising and Promotional Costs | $50,000 | $100,000 |
| Insurance | $0 | $0 |
| Other Miscellaneous Pre-opening Expenses | $100,000 | $150,000 |
| Additional Funds (three to six months) | $100,000 | $300,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Greater of (i) one half (½) of the then current store franchise fee (if no majority interest in transferee) or (ii) reasonable costs incurred by Franchisor (for transfer among principals), but not less than $25,000 |
| Renewal Fee | 50% of the then current Store Franchise Fee |
| Audit Fee | Varies (auditing costs, including travel expenses, if audit due to failure to furnish info or understate payments) |
| Interest; Overdue Payments | Lesser of 1.5% per month or maximum legal rate |
| Development Site Visits | Varies (in-country expenses for two site visits per proposed site) |
| Development Support Site Visits | Varies (in-country expenses for additional development support visits after initial visit during first two years) |
| Support Visits | $10,000 annually |
| Additional Support Visits | Varies (in-country expenses for operational support visits if significant deficiencies) |
| Training Costs | Varies (travel, accommodation, meals for personnel; cost of translators; in-country expenses for franchisor personnel during training in Territory) |
| Training Materials | Varies (cost for written, audio, video training materials at request) |
| Marketing Materials Translation Costs | Varies (cost of translating/modifying marketing materials) |
| In-Territory Assistance | Varies (out-of-pocket in-country expenses for franchisor personnel visits) |
| Vendor Consulting Costs | Varies (in-country expenses for franchisor personnel to consult on vendor selection) |
| Enforcement Costs | Varies (all expenses including court costs and attorneys' fees) |
| Indemnification | Varies (defend and indemnify against losses) |
| Taxes | Varies (reimburse for sales, VAT, gross receipts, withholding, or similar taxes) |
| Liquidated Damages | Varies (generally $100,000 one-time + $25,000/month for infringement; $100,000 one-time + $50,000/month for non-competition; $100,000 one-time + $50,000/month for transfer requirement) |
| Imputed Royalties | Greater of (i) 2.5% of Gross Sales or (ii) Royalty Fee based on approved budget (if Development Schedule commitment not met) |
| Arbitration Costs | 50% of costs and expenses of arbitration |
| Insurance Fee | Varies (reimburse for premium if franchisor obtains required insurance for franchisee) |
| Construction Extension Fee | $25,000 per 30-day period of extension |
| Computer System Fee | Varies (install and use computer system/software, upgrades) |
| Relocation Fee | Currently 50% of the Store Franchise Fee |
| Supplier Inspection and Testing | Varies (cost of testing products and inspecting facilities) |
| Sample Testing | Varies (cost of testing samples) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 10 to 12 weeks |
| Training Location | Plano, Texas, or a certified training center |
| Additional Training | Franchisor may periodically make other required or optional training available to employees, and franchisees must ensure all employees satisfactorily complete required training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | a circle around your Restaurant that has a radius of 5 miles |
| Description | Under the Franchise Agreement, a Protected Territory with a 5-mile radius around the Restaurant is granted. Franchisor and its affiliates will not establish or authorize another FOGO DE CHÃO Restaurant within this territory, except in airports or military bases, as long as the franchisee is in compliance. Franchisor retains all other rights, including advertising, selling collateral products, operating other businesses (except FOGO DE CHÃO Restaurants), and operating websites accessible within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two (2) additional five (5) year periods |
| Renewal Fee | 50% of the then current Store Franchise Fee |
| Renewal Conditions | Franchisee must give written notice 9-12 months prior to term end, complete all scheduled refurbishments/upgrades, be in compliance with all agreements, achieve all sales goals, pay all fees, and execute a general release. |
| Transfer Fee | Greater of (i) one half (½) of the then current initial Store Franchise Fee (if no majority interest in transferee) or (ii) reasonable costs incurred by Franchisor (for transfer among principals), but not less than $25,000 |
| Transfer Conditions | Franchisee must be in full compliance, remain liable for obligations, transferee must satisfy franchisor's criteria (education, business skill, experience, aptitude, character, reputation, financial resources), transferee's principals/management must attend training, transferee and owners must execute new agreements/guaranty, and franchisee/principals must sign a general release. |
| Termination for Cause | Automatic termination for insolvency, bankruptcy filings, adjudication of bankruptcy, composition with creditors, unsatisfied material judgments ($250,000+), dissolution, public offering of interest in violation of agreement, levy of execution ($250,000+), lien/mortgage foreclosure ($250,000+), sale of property after levy, unauthorized transfer, violation of non-competition/nondisclosure covenants, violation of Section 9.3 covenants, three default notices in one year, or termination of Development Agreement. Immediate termination upon notice for felony conviction, breach of representations/warranties, disclosure of confidential information, failure to maintain insurance, failure to obtain required covenants from employees, deceptive/unethical conduct, failure to meet Development Schedule obligations, failure of franchisee to comply with agreements/local laws, or failure to pay amounts due. |
| Non-Compete Period | Two (2) years after the expiration, non-renewal, termination, or Transfer of the applicable agreement |
| Non-Compete Details | During the term and for two years after, franchisee and its principals/affiliates may not directly or indirectly divert business to a Competing Business, perform acts injurious to goodwill, or own/maintain/engage in/have equity interest in a Competing Business (defined as restaurants deriving >25% annual food sales from churrasco or Brazilian/South American-style prepared meats). Post-termination, this restriction applies within the Protected Territory or within 40 miles from its outer boundaries or any Restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Brand Manager and Director of Operations (and other designated personnel) must devote their full-time efforts to the management and operations of the Franchised Restaurants. The Brand Manager is responsible for business decisions, and the Director of Operations for management and supervision of duties and restaurant operations. |
| Required Suppliers | Franchisee must purchase soft drinks and other beverages from Coca-Cola Company or its affiliates, and computer hardware and software from franchisor-approved suppliers. Franchisor may require purchase of equipment, supplies, services, food, and other products from approved suppliers. |
| Supply Restrictions | Franchisee may purchase items and services from unapproved sources if they meet franchisor specifications and written approval is obtained. Franchisor may inspect supplier facilities and test products. |
| Franchisor Revenue from Suppliers | As of the issuance date, neither the franchisor nor its affiliates had received any revenue as a result of franchisee purchases or leases directly from them, their affiliates, or third-party suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing, and we do not guarantee your notes, leases, or other obligations. |
FOGO DE CHAO Franchise Earnings — Item 19
Average Revenue
$9.4M
Median Revenue
$9.2M
Revenue Range
$5.5M – $19.8M
Sample Size
43 units
Past financial performance does not guarantee future results. Individual results will vary.
FOGO DE CHAO Litigation & Risk Flags
Clean Litigation RecordFOGO DE CHAO has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
FOGO DE CHAO System Growth
Total Units
48
Franchised
0
Company-Owned
48
FOGO DE CHAO currently operates 0 franchised locations and 48 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 3 | 0 | 43 |
| 2020 | 0 | 0 | 43 |
| 2021 | 5 | 0 | 48 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$431K
Net Income
$22K
Total Assets
$821K
Audited by Deloitte & Touche LLP for year ending January 2, 2022.
FOGO DE CHAO Franchise — FAQ
The total investment to open a FOGO DE CHAO franchise ranges from $2,665,000 to $6,720,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
FOGO DE CHAO charges a royalty fee of 5% of Gross Sales of gross sales, plus a 1.0% of Gross Sales (Marketing Fee) and 2.5% of Gross Sales (Local Advertising Requirement) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the FOGO DE CHAO Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from FOGO DE CHAO to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, FOGO DE CHAO franchise owners report average revenue of $9.4M and median revenue of $9.2M. This is based on a sample of 43 units. Past performance does not guarantee future results.
FOGO DE CHAO has been franchising since 2020. The FDD shows an investment range of $2,665,000-$6,720,000, a 5% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $50,000 and the total investment ranges from $2,665,000 to $6,720,000 depending on location size and market. A minimum of $100,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from FOGO DE CHAO and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with FOGO DE CHAO or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com