About Krystal Franchise
Krystal is a Southern fast food franchise backed by CFTW Holdings II Corp that has been serving its signature small, square sliders since becoming one of the earliest quick service restaurant chains in the United States.
The brand holds a special place in Southern food culture with its steam grilled burgers, hot dogs, breakfast items, and late night menu offerings that have fed generations of loyal customers.
With a franchise fee of $35,000, Krystal offers an opportunity to own a piece of fast food history in the Southern United States.
Krystal Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently, your Marketing Obligation is: (a) 4.5% of your Gross Sales contribute | National brand fund |
| Total Investment Range | $58,500 – $202,500 | Includes build-out, inventory, working capital |
The investment range of $59K–$203K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (Currently, your Marketing Obligation is: (a) 4.5% of your Gross Sales contribute) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee(1) | $35,000 | $35,000 |
| Professional Fees and Closing Costs(2) | $6,000 | $10,000 |
| Site Development(3) | $300,000 | $500,000 |
| Building Construction(4) | $500,000 | $800,000 |
| Equipment(5) | $280,000 | $330,000 |
| Computers, Network and POS Systems(6) | $30,000 | $60,000 |
| Signage(7) | $50,000 | $140,000 |
| Insurance(8) | $9,000 | $15,000 |
| Architecture Fees and Permits | $55,000 | $80,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Renewal Fee | Payable if you qualify to renew your Franchise Agreement and choose to enter int |
| Technology Fee | $125 |
| Audit Fee | $564 |
| Marketing Obligation(3) | 4.5% of your monthly Gross Sales |
| Insurance | Reimbursement of our costs, plus a 20% administration surcharge |
| Catastrophe Fee | 5% of any insurance proceeds |
| Additional Training or Assistance Fees | $500 |
| Conference Fee | $500 |
| Supplier and Product Evaluation Fee | $100 |
| Gift Card Fees | You must participate in and subscribe to the “Krystal Gift Card Program” during |
| Customer Issue Resolution | $20 |
| Late Payment Fee | $100 |
| Non-Sufficient Funds Fee | $100 |
| Failure to Submit Required Report Fee | $100 |
| Management Fee | $200 |
| Securities Review | The greater of (a) a non- refundable fee equal to 50% of our then-current initia |
| Professional Fees and Closing Costs(2) | $6,000 |
| Site Development(3) | $300,000 |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Renewal Term | You may enter into up to two successor franchise agreements, each with a ten-year term, if you are in good standing and you meet other requirements describe in “c” below. We may require that you sign |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Does not offer financing. |
Krystal Franchise Earnings — Item 19
Krystal does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Krystal Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Krystal System Growth
Krystal currently operates 156 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Krystal Franchise — FAQ
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