HomeFood & Beverages FranchiseHow to Start a Nathan's Famous franchise - Cost, Fee, & Profit

How to Start a Nathan’s Famous franchise – Cost, Fee, & Profit

Are you looking for an affordable franchise? How about grabbing this opportunity by setting up a Nathan’s Famous Franchise in your city. Ya, you heard it right, there is a right opportunity in this industry, we’ll discover more about this in detail.

In this guide, we’ll dive deep in to Nathan’s famous franchise with capital requirements, fee, profit, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.

Nathan's famous franchise outlet
  • Franchise Fee:  $5000- $25000 (depending on model)
  • Royalty Fee: 5.5%
  • A&P Fee: 2%
  • Liquid capital: $250,000 
  • Net worth: $1,000,000
  • Profit margin(Gross): Est. 30-35%
  • Total Initial Investment: $520,133 to $1,235,360

Overview of Nathan’s famous Franchise

nathan's famous franchise

Established in 1913 by two young polish immigrant workers, Nathan Handwerker, a roll slicer and Ida Greenwald, a waitress first met, Nathan’s famous is one of the oldest and rapidly growing iconic New York Restaurant institution. The chain is renowned for serving varieties of Hot Dogs, Jumbo Crinkle Cut Fries, Cheesesteaks, Burgers & Sandwiches, Breakfast / Desserts, Lemonade and more.

The franchise has more than 250 retail outlets across several cities in the US. With expertise & experience of over 100 years, varieties in the menu, a flexible franchise model, and extensive support & training systems, Nathan’s famous offers complete support right from the beginning, assisting with site selection and design, marketing, pre-opening and ongoing support.

Please continue reading if you are passionate about food franchises & this little snippet about the Nathan’s famous chain excites you.

We will offer comprehensive and well-researched information regarding the Nathan’s famous chain, along with its price, fees, profit margin, and—most importantly—the reason “Why” you need it.

Key facts on Nathan’s Famous

Sr No.TypePrivate
1Trade NameNathan’s Famous
2IndustryFood & Beverages
4Founders Nathan Handwerker, Ida Greenwald
5HeadquartersJericho, NY
6Number of locationsOver 250 locations
7Area servedSeveral cities in US and a few
of them in Canada
8Franchise modelCart, Kiosk, Mobile Truck, In line,
Freestanding, Drive Thru
9MenusHot Dogs, Jumbo Crinkle Cut Fries,
Cheesesteaks, and other items

Why Consider Owning a Nathan’s famous Franchise

nathans famous franchise menu
  1. Flexible franchise/business model:
    • Nathan’s famous chain offers a wide range of flexible business models, and one can choose any option based on their financial capabilities.
  2. Robust franchise and distribution network:
    • The chain has over 250 Nathan’s restaurants all over the world and 70,000 points of distribution – 44,000 at retail and 14,000 in food-service.
  3. Low investment cost:
    • Considering the required floor area of 300 to 3000 square feet and a flexible & affordable menu option, Nathan’s famous franchise requires a relatively low investment and offers an impressive profit margin.
  4. Leverage on its brand values and presence:
    • Experience & expertise of over 100 years.
    • Low investment and high profit
    • Flexible menu options
    • Extensive training and support programs
    • Adaptable restaurant design
  5. Award & Recognition:
    • Nathan’s famous chain has been placed as one of the legacy restaurant brand across the globe, and have continues to evolve as ‘The Flavor of New York’.
  6. Relish the loyal customer base:
    • The chain also garners a huge loyal customer base, which helps them to build profound trust and generate regular income for the franchise.
  7. Complete and robust processing system:
    • The chain offers an end-to-end support right from beginning, selection and design, marketing, pre-opening and ongoing support.
Nathan's famous franchise support

How much does a Nathan’s famous Franchise Cost?

Nathan’s offers a varieties of franchise model, and one can opt for any model based on their financial limitations.

To start a Nathan’s Famous franchise, one would at least require an initial investment of $520,133 to $1,235,360. However, the franchise does provide support in selection and setting up a Nathan’s famous franchise, but we advise you to conduct proper market research before opening an outlet.

Nathan’s Famous Franchise Fee

The franchise fee for the Nathan’s famous is estimated to be $5000 to $25000(depending on the chosen model). Furthermore, to qualify financially, franchise candidates and their partners/investors must have $250,000 in liquid capital and a minimum net worth of $1,000,000.

Estimated initial investment for Free Standing restaurant:

Name of FeeLowHigh
Initial Franchise Fee$25,000$25,000
Real Estate Rent$53,333$113,750
Restaurant Construction$205,000$550,000
Site Preparation$25,000$170,000
Furniture, Fixtures, and Equipment$145,000$245,000
Pre-Opening and Inventory Expenses$10,000$15,000
Training Expenses$1,200$10,360
Security Deposits$0$0
Utility Deposits$2,500$6,500
Professional Fees$12,000$25,000
Business Licenses$100$750
Additional Funds (first 3 months)$10,000$25,000
Grand Opening Advt’g$2,500$2,500
ESTIMATED TOTAL (without co-branding)$501,633$1,201,360
Additional Costs for Arthur Treacher’s Co-Branded Operation
Additional Furnishings, Fixtures and
Equipment for Arthur Treacher’s
Arthur Treacher’s Initial Inventory and Supplies$2,500$5,000
Additional Signage for Arthur Treacher’s$2,000$3,500
Arthur Treacher’s Initial Fee$5,000$7,500
ESTIMATED TOTAL (if the franchisee chooses and
is approved to operate both concepts)

* For more details on cost break up, please check the latest FDD version.

Additional Cost for Nathan’s Famous

Typically, to run and maintain a Nathan’s famous Franchised outlet, one must adhere to their standards and are liable to pay a few additional costs such as Royalty fee, advertisement fee, maintenance fee, and a few other investments.

The on-going royalty fee for Nathan’s famous franchise is 5.5% and A&P is 2% of gross sales.

Is Nathan’s famous Franchise Profitable?

Considering its expertise of over 100 years, a wide range of affordable & delicious menu range, and a loyal customer base, one can certainly expect to generate an impressive profit margin. According to our estimate, if the franchisee has chosen a perfect location with high customer footfall, one can expect a gross profit margin of 30-35%.

Nathan’s Famous Franchise requirements

There are certain condition that the franchisee to meet to be an approved Nathan’s famous outlet holder;

  • The franchise team requires its franchisee prospects to understand the industry, business outline, and inventory stock and continuity.
  • You must have $250,000 in liquid capital and a minimum net worth of $1,000,000.
  • One should possess the ability to lead the team while maintaining and following the Nathan’s guidelines.
  • The franchisee unit holder will be liable to pay a minimum royalty fee of 5.5% which will be charged on monthly basis.

How to Open a Nathan’s Famous Franchise?

Getting a Nathan’s Famous franchise requires a relatively low investment and in return offers an impressive profit. Nevertheless, Nathan’s franchise may offer several benefits, and interested candidates can take up franchise outlet locally or worldwide.

To get a Nathan’s famous chain franchise, please visit their official website and fill in the required details in franchise form.

Fill in the personal and location details such as Name, Email, Phone number, background & restaurant experience, outlet’s geography, liquidity capacity, and other details.

Once you submit the necessary details, the Nathan’s famous sales team will review your application and contact you based on their location feasibility. Please do note that due to high demand, the franchise may take some time to respond to your query.

Need help from us? — Do fill out a Get a Franchise form.

Final Takeaway

Considering its growth potential, unique, affordable, delicious & diverse menu range, proven business model, brand recognition & awareness, low investment risk, and more than 100 years of experience in this sector, opening a Nathan’s famous outlet will prove profitable to the interested aspirants.

Furthermore, Nathan’s chain offers a flexible business model, which can be selected according to one’s financial limitations and risk tolerance.

With an Initial investment of $520,133 to $1,235,360 and a franchise fee of $5000 – $25000, Nathan’s famous chain may offers an impressive profit margin to its stake holders.

The Bottom line – In case you are interested in the food and beverages industry and want to take advantage of the opportunity with a minimal risk appetite, then start this franchise from the kiosk model by paying the minimum franchise fee. As you develop confidence, you can then expand with other models.

Good Luck!! Happy Franchising!!


  1. How much does it cost to open a Nathan’s Famous franchise?

    Ans: To open a Nathan’s franchise, one would at least require an initial investment of $520,133 to $1,235,360. There are some other cost involved and a few of them are list below;

    Franchise Fee:  $5000- $25000 (depending on model)
    Royalty Fee: 5.5%
    A&P Fee: 2%
    Liquid capital: $250,000 
    Net worth: $1,000,000
    Profit margin(Gross): Est. 30-35%
    Total Initial Investment: $520,133 to $1,235,360

  2. What are the different franchise model available for Nathan’s franchise?

    Ans: Nathan’s franchise offers varieties of flexible and affordable business model with its franchise fee starting from $5000 to $25000. At present, they have Cart, Kiosk, Mobile Truck, In line,
    Freestanding, Drive Thru model in place.

FranchiseGoal Admin
FranchiseGoal Adminhttps://franchisegoal.com
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