About Local Burger Franchise
Local Burger is a restaurant franchise that has been offering franchise opportunities since 2023, backed by LBBB, LLC.
The brand focuses on serving high quality burgers made with locally sourced and responsibly raised ingredients, creating a dining experience that appeals to consumers who care about where their food comes from.
The franchise fee is $30,000.
Local Burger Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 6.00% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Not currently charged; may be imposed in the future | National brand fund |
| Total Investment Range | $859,000 – $1,520,500 | Includes build-out, inventory, working capital |
The investment range of $859K–$1.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6.00% of Net Sales) and marketing fee (Not currently charged; may be imposed in the future) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Land (See Note 2 below) | $0 | $0 |
| Studies and Site Work | $1,500 | $2,500 |
| Lease Cost & Commissions | $3,000 | $10,000 |
| First Month’s Rent | $3,000 | $10,000 |
| Architects and Engineers | $12,500 | $25,000 |
| Tenant Improvements & Construction | $399,000 | $700,000 |
| Design and Decor | $95,000 | $150,000 |
| Equipment, Fixtures & Fixed Assets | $225,000 | $300,000 |
| Vehicles | $0 | $0 |
| Signage | $5,000 | $25,000 |
| Computers and Technology | $3,000 | $6,000 |
| Opening Inventory & Supplies to Franchisor or Affiliates | $15,000 | $25,000 |
| Additional Opening Inventory & Supplies (Liquor) | $5,000 | $10,000 |
| Security Deposits | $2,000 | $5,000 |
| Utility Deposits | $1,000 | $2,000 |
| Licenses & Permits (including Liquor) | $5,000 | $100,000 |
| Grand Opening Campaign | $7,500 | $10,000 |
| Initial Marketing Expense | $5,000 | $15,000 |
| Franchise Training Expenses | $3,000 | $8,000 |
| Legal and Accounting | $1,500 | $8,000 |
| Additional Funds- Working Capital (3 months) | $25,000 | $50,000 |
| New Store Opening Training | $10,000 | $25,000 |
| Insurance- Annual Premium | $2,000 | $4,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $12,500 |
| Renewal Fee | $15,000 |
| Technology Fee | Not charged as of the Issuance Date. We reserve the right to charge up to $500 per month. |
| Audit Fee | $500 |
| Brand Fund Contribution | Up to 2% of Net Sales |
| Additional Training Fee | $700 per day plus trainer’s travel, lodging, meal, and incidental expenses |
| Loyalty Program Fees | Not currently charged; may be imposed in the future |
| Purchasing Program Fee | Not currently charged; may be imposed in the future |
| Supplemental Franchise Training Program Tuition | $4,500 per trainee |
| Additional Consulting Fee | $700 per day plus representative’s travel, lodging, meal, and incidental expenses |
| Gift Card Program Purchases and Fee | Cost of gift card plus third party administrator fee, currently at $35.00 per month |
| Indemnification Costs | As incurred |
| Convention Fee | Estimated to be $700 per attendee, excluding travel, lodging and meals |
| Relocation Fee | 10% of the then-current Initial Franchise Fee |
| Bank Fees | Actual Bank Fees charged for insufficient funds or denied access for EFT/ACH transfer plus an administrative fee of $25 per event |
| Late Charge | Lesser of 1.5% per month or highest rate allowed by law (10% in California) |
| De-Identification Fee | Our actual costs, plus interest and an administrative fee of 15% of our actual costs |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 weeks |
| Classroom Training | 32 |
| On-the-Job Training | 124 |
| Training Location | Long Island, New York |
| Additional Training | We will provide franchise training program participation opportunities for your replacement and additional managers on our 3-week training course, when previously trained managers are replaced. You must reserve training program dates and pay the related fees when required under System Manual. You are responsible for your trainees’ travel, lodging, meal, incidental, compensation and benefit costs for their attendance at training. The tuition charge will be $4,500 per trainee. We may conduct training at an annual convention or regional meeting. We may require that your Owner-Operator, General Manager, Lead Kitchen Cook and possibly other leaders attend this training. We may include the training tuition in a convention or meeting fee or may charge separately for training tuition and materials. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | a radius or boundary description that takes into consideration a population of approximately 100,000. |
| Description | When you sign the Franchise Agreement, unless you have selected and we have accepted the precise location of the Franchised Restaurant, we will designate an area (the “Protected Area”) based on a radius or boundary description that takes into consideration a population of approximately 100,000. We may take into account both residential and commercial day time populations. When we accept the location within the Protected Area you propose, we will fix the boundaries of the “Protected Area” for the Franchised Restaurant, if they are different from the original Protected Area. In dense urban markets, the Protected Area may be much smaller than other markets and may have vertical limits as well as horizontal limits. We and our Affiliates reserve the right to operate, or authorize others to operate, a Nontraditional Concept Restaurant in a Host Facility located within a Protected Area. A franchisee will not have a right of first refusal to develop a Nontraditional Concept Restaurant located in a Host Facility within the Protected Area, even if the Host Facility does not mandate the Restaurant’s operation by a Qualified Operator. A Nontraditional Concept Restaurant will have a Protected Area limited to the boundaries of the Host Facility. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | two (2) additional “Renewal Term” periods of five (5) years each |
| Renewal Fee | 50% of our then current initial franchise fee |
| Renewal Conditions | You will be eligible to renew if at the time you must give notice of your intent to renew and at all times through the end of the Term then ending, (i) you and your Affiliates are not in default under this Agreement or any other franchise agreement with us; (ii) you and your Affiliates have satisfied all monetary obligations then due and owing to us and our Affiliates; and (iii) the Franchised Restaurant is not in the bottom quartile of franchised Restaurants for Net Sales for the preceding fiscal year, and (iv) the average quality assurance score for all of your Franchised Restaurants on the three inspections preceding the date your renewal notice must be given is at least 85%. Our consent will be further conditioned on maintaining eligibility to renew through the end of each Term, and on your satisfaction of the following conditions: You and your Owners must, at the times we specify, (i) at our request and after any disclosure required by law, execute our then current form of franchise agreement (a “Successor Franchise Agreement”) and personal guaranty, which may have materially different fees, terms and conditions; (ii) perform the remodeling, repairs and renovations described below that we may require; (iii) complete, at your expense, any retraining program we may require; and (iv) execute a general release of any and all claims you, your Owners and any guarantor may have against us and our Affiliates as of that time, except for such claims as may not be released in advance under applicable law. |
| Transfer Fee | a non-refundable fee equal to 50% of the initial franchise fee we then charge for a single franchise |
| Transfer Conditions | You may not directly or indirectly transfer, assign, grant a security interest in, or pledge any direct or indirect interest in this Agreement, the Franchised Restaurant, the Location or in you to any Person without our prior consent, which we may withhold or condition in our sole discretion. We condition our consent on satisfaction of one or more of the following: (i) the proposed transferee must satisfy all of the requirements and conditions then being used to qualify as a new franchisee of ours; (ii) the proposed transferee must comply with Section 24; (iii) you must satisfy all of your monetary obligations then due and owing to us and our Affiliates; (iv) you must cure all existing defaults under this Agreement; (v) you and your guarantors must execute and deliver a general release of all claims and causes of action against us and our Affiliates; (vi) the transferee must execute and deliver our then current form of franchise agreement with the same Royalty Fee and the same expiration date and remaining Renewal Term (if any) as set forth in this Agreement; and (vii) you must pay a non-refundable fee equal to 50% of the initial franchise fee we then charge for a single franchise if you transfer the Franchise Agreement or Franchised Restaurant, or in the event of an ownership change involving control of 50% or more of your equity interests. We will not charge a fee for any transfer of your equity interests among any of your existing owners, any member of your immediate family or an initial transfer from an individual to an entity. Transfers include sales, gifts, donations, and exchanges for value or without value. If you are an individual, then in the event of your death, permanent disability or appointment of a guardian for you, this Agreement will terminate 90 days after your death, permanent disability or appointment of a guardian unless we give our consent within that 90-day period to the assignment of this Agreement to a successor in compliance with this paragraph. |
| Termination for Cause | We may terminate your Franchise Agreement after written notice of a curable default if you fail to cure within the time permitted or such longer period as required by law, or immediately upon written notice of an incurable default unless a longer notice period is required by law. |
| Non-Compete Period | 2 years |
| Non-Compete Details | You, your managers and your equity owners may not engage, either directly or indirectly through any financial or beneficial interest in any other person, in any “competing business,” other than a Franchised Restaurant. A “competing business” means any restaurant serving classic American diner cuisine as its primary menu offering. For a period of 2 years after the termination or expiration of the Franchise Agreement, you, your managers and your equity owners may not engage in any competing business other than a Franchised Restaurant, within your Protected Area and within 20 miles from any Restaurant listed on our web site, or any directory we provide to you, at the time of termination or expiration, either directly or indirectly through any financial or beneficial interest in any other person. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | At least one person who has a significant equity ownership position in the franchisee (at least 5%) must be designated the Owner-Operator of the franchisee and attend the LBT training program. The Owner-Operator must supervise Restaurant operations and will be our primary point of contact in our dealings, but we do not require full time participation in day-to-day operations. If the franchisee is an individual, we strongly recommend that you are the on-premises supervisor you will be the Owner-Operator. Your General Manager and Lead Kitchen Cook should have restaurant experience and must complete our LBT program. Your managers are not required to have equity interest in the franchisee’s business but will be required to sign our form of management confidentiality and non-competition agreement attached to the Franchise Agreement. |
| Required Suppliers | As of the Issuance Date, you must purchase all equipment, fixtures, food products, condiments, supplies, paper products, computer hardware and software, and signage from vendors we approve or to meet our specifications. The vendor’s services should include licensing all software necessary to operate the Franchised Restaurant and providing database management services, software maintenance and help desk support. All other purchases and leases must meet our standards and specifications. We specify these requirements in our System Manual or otherwise in writing. You must purchase or lease these items only from approved suppliers listed in our System Manual or otherwise approved by us in writing. You may not purchase or lease from any source any other goods, services, supplies, fixtures, equipment, signs, inventory, or real estate relating or any other alternative supplier to the establishment or operation of your Franchised Restaurant without our prior written consent. We have designated certain proprietary ingredients in the System Manual that must only be obtained from our designated supplier Driscoll Foods (“Driscoll”), 6 Westbelt, Wayne, NJ 07470; (973) 672-9400. These items include our proprietary hamburger blend, hot dogs and certain other core menu items that are important elements of our branding and competitive strategy. |
| Supply Restrictions | You may not obtain these core ingredients and foodstuffs from a supplier we have not designated or approved. If you want to use a good or service or obtain a good or service from a supplier we have not yet approved, you first must submit sufficient information, specifications and/or samples for our determination whether the product or service complies with our System Standards, or the supplier meets our approved supplier criteria. We may condition our approval of a supplier on the supplier’s agreement to comply with product quality standards, frequency of delivery, standards of service, and concentration of purchase requirements. We also may impose limits on the number of approved suppliers, products and services. Our approval should not take more than 30 days in most instances. We reserve the right to test supplies and inspect the premises of suppliers before granting our approval. We will invoice you for the supplier approval fee, plus out-of-pocket costs and expenses we incur for any inspection or testing. We may terminate our approval of a supplier or any products or services at any time, with or without cause, upon reasonable written notice of 30 days. |
| Franchisor Revenue from Suppliers | As of the Issuance Date, we derive no revenue or other material consideration from franchisee purchases. We may derive revenue from suppliers from franchisee purchases in the future in our sole discretion. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Local Burger Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Local Burger 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.
Local Burger System Growth
Local Burger currently operates 0 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 3 |
| 2021 | 0 | 0 | 3 |
| 2022 | 0 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 1 states: NY
Franchisor Financials (Item 21)
Audited by Singer Lewak LLP for year ending December 31.
Local Burger Franchise — FAQ
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