Krystal is a regional fast food restaurant chain based in Dunwoody, Georgia, with eating places within the Southeastern United States and Puerto Rico. It is known for its small, square hamburgers, called sliders in locations aside from the Southeast, with steamed-in onions. Krystal was found in 1932 in Chattanooga, Tennessee, through Rody Davenport and J. Glenn Sherrill. The organization has grown to over 300 restaurants in 11 states. Krystal’s menu features plenty of sliders, breakfast sandwiches, hot puppies, hen sandwiches, etc. The sliders are the most popular item on the menu, and they arrive in plenty of flavors, together with Original, Cheese, Sir Francis Bacon, and Grilled Cheese. Krystal additionally gives quite a few breakfast sandwiches, which include the Krystal Breakfast Sandwich, the Krystal Chicken Biscuit, and the Krystal Sausage Biscuit. Krystal has over 300 burger and hamburger restaurant franchise in 11 states. Krystal’s annual revenue is envisioned to be over $500 million. Krystal has a marketplace percentage of approximately 1% in the rapid food industry.  Krystal is popular within the Southeastern United States, where it has a loyal purchaser base. Krystal is currently experiencing growth, and the organization plans to open new restaurants within the upcoming years.

Krystal Franchise


How much does a Krystal Franchise cost?

The Krystal franchise cost ranges from $900,000 to  $1,300,000 with franchise fees of $32,500.the cost break-up is as below

How much is Krystal Burger Franchise?

Krystal Burger Franchise Fee $32,500
Krystals  Franchise Cost $900,000 – $1,300,000
Royalty Fee 4.5% of Gross Sales
Advertising Fee 4.5% of Gross Sales
Term of Agreement 20 Years
Is the Franchisee term renewable? Yes
Renewable Franchise Fees 1.5% of The Initial Fee

Krystal Franchise

How much do Krystal Franchise owners make?

The amount of money that franchise owners make can vary depending on more than a few factors, together with the area of the restaurant, the size of the restaurant, and the general overall performance of the restaurant. However, consistent with a 2022 report, the average annual profits for a franchise owner is $112,000.

Is the Krystal Burger Franchise Profit Worth the Cost?

Whether or not the franchise earnings is worth the cost depends on a range of things, including your financial situation, your experience, and your risk tolerance. The preliminary investment to open a franchise is between $900,000 and $1,300,000. This includes the price of the franchise rate, as well as the fee of the restaurant, equipment, stock, and advertising.

The annual earnings for a franchise owner is $112,000. However, this is simply an estimate, and the real profit will vary depending on a number of factors.

Potential Risks to consider before investing in a Krystals Franchise

  1. Competition: The fast food industry is a competitive industry, and there are many other chains that compete with Krystal.
  2. Location: The place of the restaurant is vital for profitability, and you will need to pick an area that is in a high-traffic location.
  3. Management: You will want to manage the franchise successfully, and you will need to have the capabilities and experience to accomplish that.
  4. Marketing and advertising: You will want to invest in advertising and marketing to draw customers for your restaurant.

Krystal Hamburger Franchise Requirements

  1. Minimum experience required: 2 Years of Experience in the restaurant industry.

2. Minimum Cash Requirements: Liquid capital of $500,000

  1. Net Worth Required: $1,500,000
  2. Franchise fee: $32,500
  3. Initial investment: $900,000 – $1,300,000

Krystal Training to Franchises

Krystal presents a number of training and operational resources to assist franchisees in achieving success. These sources include

  • Initial training: This covers subjects along with food training, customer support, and control.
  • Ongoing guide: Krystal offers franchisees ongoing assistance, including getting right of entry to a toll-free helpline and ordinary visits from Krystal representatives.
  • Operational manuals: Krystal gives franchisees operational manuals that define the organization’s requirements for meal coaching, customer service, and control.


How is Krystal Territory Granted to Franchises

Krystal grants territory to franchises through a system called area development franchising. This way, a franchisee is granted the right to expand multiple Krystal restaurants in a selected region. The size of the location will vary depending on the area and the call for Krystal restaurants.

Krystal uses a number of of factors to decide how territory is granted to franchises, along with

  1. Population
  2. Competition
  3. Demand
  4. Experience


What is the Franchise Term of Agreement and Renewal?

The initial franchise agreement with Krystal is for a term of twenty years. The agreement may be renewed for an additional 10 years. 

Does Krystal provide Financial Assistance to Franchises?

Krystal no longer provides financial assistance to franchises. However, they do provide a number of financing alternatives to assist franchisees including

  1. Loans
  2. Vendor financing
  3. Franchise financing

Krystal Franchise

Pros & Cons of owning a Krystal Franchise

Pros of owning a Krystals Franchise

  • Established brand
  • Supportive franchisor
  • Business model
  • Potential for profit

Cons of Owning a Krystals Burger Franchise

  • High initial investment
  • Franchise fees
  • Royalties
  • Competition
  • Regulations

What are Krystal Franchise reviews

“Krystal has been a superb franchise. The guide from the company is superb and the logo is well-known. I could advocate Krystal to everyone seeking to get into the eating place industry.” – Franchisee in Georgia

“I’ve been a Krystal franchise for 10 years and I’ve been very satisfied with the enjoyment. The business enterprise presents exceptional aid and the brand is robust. I could honestly advise Krystal to all of us looking to own a restaurant.” – Franchisee in Florida

“Krystal is a fantastic brand with a faithful patron base. However, the preliminary investment is high and the franchise expenses can be a burden. Overall, I’m glad with my decision to end up a Krystal franchise.” – Franchisee in Tennessee


Krystal Rankings

Krystal turned ranked #12 on QSR Magazine’s 2022 Top 250 Restaurant Chains listing.

Krystal Franchisee Deck Analysis and Overview

Krystal is a fast-food restaurant chain that was based in Chattanooga, Tennessee in 1932. The employer is known for its small, square hamburgers, which can be served on steamed buns. Krystal additionally offers quite a few different menu items.

Is Krystal a Franchise Opportunity?

Yes, Krystal is a Franchise Opportunity.

Krystal Burger Franchise Information

Industry Type Fast Food
Sub Category Hamburgers
Year Established 1932
Company Name Krystal Company 
Founder/Management Head J. Frank Rhea
Franchising Started 1968
Employees at Company H.O 1,100
Franchisee Expansion Plan 50 new franchises by 2025
Number of Units 400 
Number of Franchise Units 340
Social Media Handles Facebook
Company Office location  1401 North Lee Highway


Krystal Franchise Success and Failure Rate

The below table will highlight Krystals Franchise success and failure rate for the last 3 years. This will supplement your decision-making process.


Year Format Start End Change
2019 Franchisee Owned 1000 900 -100
Company Owned
2020 Franchisee Owned 900 850 -50
Company Owned
2021 Franchisee Owned 850 825 -25
Company Owned


Competition Analysis of Krystals Hamburger Franchise


Brands Cost to Franchisee Franchise Fees Royalty + Ad fees Expected Profit Recoup of Capital FD Rating
Krystal $100,000 $25,000 7% $100,000 – $200,000 3-5 years 3.5/5
White Castle Franchise $250,000 $50,000 10% $150,000 – $300,000 4-6 years 4/5
Waffle House Franchise


$300,000 $75,000 10% $200,000 – $400,000 5-7 years 4.5/5
Sonic Drive-In Franchise


$350,000 $100,000 11% $250,000 – $500,000 6-8 years 5/5
Burger King Franchise


$500,000 $150,000 14% $300,000 – $600,000 7-9 years 4.5/5
McDonalds Franchise



$1,000,000 $450,000 20% $500,000 – $1,000,000 10-12 years 5/5

The Franchisee Deck rating for the Krystals Franchise is 4.0/5.0.

Krystal Franchise

Conclusion: Should You buy a Krystal Franchise for sale?

The decision of whether to invest in a Krystal franchise for sale relies on several factors, such as your financial resources, restaurant business experience, and assessment of the future of the fast food industry. Krystal is a reputable brand with a dedicated customer base and a proven track record of success.

Nonetheless, the fast food sector is highly competitive, and Krystal encounters challenges like escalating costs, intensifying competition, and shifting consumer preferences.


Frequently Asked Questions (FAQs)

  • Is the Krystal Franchise profitable?

The profitability of a franchise can range depending on quite a number of factors, inclusive of the vicinity of the eating place, the control of the franchisee, and the general overall performance. However, franchises can be profitable businesses. According to the company’s Franchise Disclosure Document (FDD), the net worth for a franchise is 15%.

  • Can you make money owning a Krystal?

Yes, you may make money owning a Krystal franchise.

  • Is Krystal a Franchise?

Yes, Krystal is a franchise. The company began franchising in 1968, and at present, there are over 340 franchises in 11 states.

  • How much is a Krystal Franchise?

The initial investment for a franchise is generally among $900,000 and $1.3 million.


  • How do Krystal Franchises make money?

Franchises make cash thru a variety of assets, such as:

  1. Sales of meals and beverages
  2. Royalties
  3. Advertising expenses


Published On: October 13th, 2023 / Categories: Blog, Burger Franchise Opportunities /

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