FAT Brands Inc. (FATBB): Business Model Canvas [Dec-2025 Updated]

You're looking at a company juggling rapid expansion across 18 restaurant concepts with a heavy debt load, and honestly, it's a fascinating, high-stakes balancing act that demands a close look. FAT Brands Inc. is pushing growth with a 900-unit pipeline, relying on its asset-light franchising model, but this strategy is currently shadowed by a $1.3 billion securitized debt structure that resulted in interest expenses hitting $41.5 million in Q3 2025 alone. We need to see exactly how the revenue streams from its 2,300 global units and manufacturing division are expected to service that debt while funding the next phase of acquisitions; dive into the full Business Model Canvas below to map out the risks and the operational levers they are pulling right now.

FAT Brands Inc. (FATBB) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships that power FAT Brands Inc.'s operations and growth as of late 2025. These aren't just vendors; they are essential cogs in the machine, especially given the company's current financial restructuring efforts.

The sheer scale of FAT Brands Inc.'s franchise network relies heavily on its operators. These are the people on the ground making the brand promises real.

• Independent franchisees operating approximately 2,300 units globally as of Q2 2025.
• A robust development pipeline backed by approximately 900 committed locations, with a total of roughly 1,000 signed deals noted in Q2 2025.

The financing structure involves a key fiduciary partner navigating significant recent turbulence. The securitized debt arrangement is central to the company's capital structure, even as it faces immediate payment demands.

Here's the quick math on the recent debt acceleration notices involving the trustee:

The expansion into the ghost kitchen and delivery space is being executed through a specific, high-profile partnership. This collaboration is designed to immediately increase brand presence without building new brick-and-mortar stores.

• Virtual Dining Concepts (VDC) for ghost kitchen and delivery expansion, specifically launching Great American Cookies.
• Projected expansion to nearly 900 locations by the end of 2025, leveraging VDC's technology and Chuck E. Cheese's kitchen management resources.
• The initial rollout targeted availability at over 400 locations by the end of August 2025.

FAT Brands Inc.'s Georgia factory serves as a strategic asset, both for its own brands and for external clients. This manufacturing arm is a stated pillar for growth, aiming to increase output significantly.

The factory's performance and capacity utilization show a clear partnership opportunity:

• The Georgia factory generated $10,300,000 in second quarter sales and $3,800,000 in adjusted EBITDA in Q2 2025, achieving a 37% margin.
• Currently operating at approximately 45% of its cookie dough production capacity, with a strategic goal to reach 55% utilization.
• This utilization increase is targeted through expanded organic channels and securing third-party dough and mix manufacturing clients.

Finance: draft 13-week cash view by Friday.

FAT Brands Inc. (FATBB) - Canvas Business Model: Key Activities

You're looking at the core actions FAT Brands Inc. (FATBB) is taking right now, especially given the intense financial pressure they're under as of late 2025. It's a mix of aggressive operational execution and critical balance sheet management. Here's the quick math on what they're doing day-to-day to keep the lights on and grow.

Acquiring and integrating new restaurant brands into the platform

While the focus has clearly shifted to debt management, the underlying activity of expansion through new unit openings continues. FAT Brands Inc. opened 13 new store locations during the third quarter of 2025. This brought the year-to-date total for 2025 to 60 new restaurant openings. The company maintains a robust development pipeline, which includes over 1,000 signed deals, with approximately 900 committed locations expected to contribute $50-$60 million in incremental EBITDA once they are fully operational. Honestly, the acquisition spree that defined prior years has paused, but supporting the existing portfolio's growth is a key activity.

Franchising and refranchising units, like the 57 Fazoli's locations

A major operational focus is shifting corporate-owned stores to the franchise model to generate upfront cash and reduce operational overhead. FAT Brands Inc. is actively advancing plans for the refranchising of its 57 company-owned Fazoli's restaurants. This move is part of a broader strategy to move toward a near 100% franchise model, which is projected to yield overhead savings of approximately $2.5 million per year. As of the Q3 2025 report, the company still operates a portfolio that includes brands like Fazoli's, which previously operated over 200 total units, with 55+ of those being corporate-owned units.

The core franchising activity involves collecting ongoing royalties and initial franchise fees. Here's a snapshot of some key financial context around their operations as of the third quarter of 2025:

Centralized brand management, marketing, and supply chain support

FAT Brands Inc. must manage centralized functions across its 18 restaurant brands. This includes supporting marketing efforts, which saw advertising expenses increase to $12.2 million in the third quarter of 2025, up from $10.0 million in the same period last year. The company is also focused on operational execution, evidenced by its casual dining segment posting 3.9% same-store sales growth in Q3 2025, which is a bright spot. The company is defintely using centralized support to drive performance where it can.

Key operational support activities include:

• Supporting a pipeline of approximately 900 committed new locations.
• Driving co-branding initiatives, such as the dual-branded Round Table Pizza and Fatburger location that more than doubled weekly sales versus its prior standalone format.
• Managing the operations of company-owned locations, which contributed to a cost of restaurant and factory revenues of $94.6 million in Q3 2025.

Manufacturing and distributing proprietary food products from the Georgia facility

The Georgia production facility is a key asset for both captive and third-party revenue. For the first quarter of 2025, this facility generated $8.8 million in sales and $3.1 million in adjusted EBITDA, achieving a 35% margin. A strategic goal is to grow factory production to utilize approximately 55% of its excess capacity, partly through a planned third-party contract with a national restaurant entertainment chain for cookie dough manufacturing. The company projects an incremental $5 million in EBITDA from these expanded factory operations.

Actively negotiating restructuring of the $1.3 billion securitized debt

This is arguably the most critical key activity as of late 2025. Lenders have declared the entire $1.3 billion debt load immediately due following defaults on debt tied to five subsidiaries, citing insufficient deposits in securitization accounts at UMB Bank. FAT Brands Inc. ended the most recent quarter with only $2 million in unrestricted cash and $12 million restricted, which is far short of the immediate obligation. The company is in active, constructive discussions with bondholders regarding a refinancing, restructuring, or other transactions. Furthermore, a separate demand for payment of nearly $179 million, secured in part by 22.5% of the shares of Twin Hospitality Group, is also being addressed. The company reported a trailing 12-month net loss of $225,793 thousand (or $225.8 million) as of September 30, 2025.

FAT Brands Inc. (FATBB) - Canvas Business Model: Key Resources

You're looking at the core assets FAT Brands Inc. (FATBB) is relying on to navigate the current financial headwinds. These are the tangible and intangible things the business uses to create value, and right now, the balance between them is key.

The foundation of FAT Brands Inc.'s resource base is its extensive collection of restaurant concepts. As of the third quarter of 2025, the company owned a portfolio of exactly 18 diverse restaurant brands. This portfolio includes concepts like Fatburger, Round Table Pizza, and Johnny Rockets, among the others.

A significant, yet currently stressed, resource is the securitized financing vehicle. This structure, which uses future cash flows to back debt issuance, has recently been a source of major liquidity risk. Lender UMB Bank declared an acceleration notice for roughly $1.26 billion in securitized debt. Specifically, one tranche, the FB Resid Notes, has an aggregate principal amount outstanding of $158.9 million. The company is actively in discussions to reshape this balance sheet, having previously amended the Fazoli's Securitization to extend the Anticipated Call Date to October 2025.

Growth potential is locked into the development pipeline. FAT Brands Inc. maintains a global development pipeline of roughly 900 committed new locations. These future units are expected to contribute an incremental $50-$60 million in EBITDA once they are fully operational.

The manufacturing capability is another distinct asset. The company's facility in Georgia is a key component of its supply chain and growth strategy. For the third quarter of 2025, this manufacturing segment generated $9.6 million in sales [cite: Required Outline Data]. The company projects an additional $5 million in adjusted EBITDA growth from factory operations alone in 2025. For context, the total cost of restaurant and factory revenues for Q3 2025 was $94.6 million.

Finally, the intangible assets are crucial for long-term franchising value. These include the intellectual property and brand equity for each acquired concept. The total system-wide sales across all brands for Q3 2025 were reported at $567.5 million.

Here's a quick look at the scale of the brand portfolio and development commitments:

• Number of owned restaurant brands: 18
• Committed new locations in pipeline: Roughly 900
• Total units franchised and owned globally: Approximately 2,300
• Projected incremental EBITDA from pipeline: $50-$60 million

The financial strain on the securitization vehicle is a near-term risk to accessing capital, but the physical and intellectual assets remain the core of the business model.

Finance: draft 13-week cash view by Friday.

FAT Brands Inc. (FATBB) - Canvas Business Model: Value Propositions

You're looking at the core value drivers for FAT Brands Inc. (FATBB) as of late 2025. The company's proposition centers on a diversified portfolio managed through a capital-efficient structure.

Diversified restaurant concepts across quick-service to polished casual dining

FAT Brands Inc. offers a broad spectrum of dining experiences, from quick-service to polished casual, which helps insulate performance across different consumer spending environments. As of September 28, 2025, the company operated approximately 2,300 locations worldwide, with about 92% being franchised. The casual dining segment, which includes concepts like Twin Peaks, posted same-store sales growth of 3.9% in the third quarter of 2025. The portfolio includes eighteen restaurant brands as of that date.

Performance across the portfolio shows variation, which is a key benefit of the diversification strategy:

• Round Table Pizza delivered a modest but positive 0.6% same-store sales increase in the first quarter of 2025.
• Round Table Pizza is experiencing 21% loyalty-driven sales growth.
• Digital sales at Great American Cookies now account for 25% of total revenue.

Asset-light franchising model for rapid, capital-efficient global expansion

The asset-light approach means FAT Brands Inc. relies heavily on franchisees to fund unit growth, which is capital-efficient for the parent company. The company is focused on strategic expansion backed by approximately 900 committed locations as of the third quarter of 2025. These committed locations are projected to contribute $50-$60 million in incremental EBITDA once they are fully operational. The pace of expansion remains a core value proposition; the company opened 18 new locations in the second quarter of 2025 and has opened 60 new restaurants so far in 2025. This is a continuation of momentum, following the opening of 92 units in 2024. The company's total revenue for the thirteen weeks ended September 28, 2025, was $140.0 million.

Centralized support platform for franchisees to lower their operating costs

FAT Brands Inc. provides a centralized platform to help franchisees manage operations, which is crucial for maintaining brand standards and driving unit-level economics. The company is actively working to trim expenses, having already implemented over $5 million in annual G&A reductions based on the 2024 run rate. Furthermore, a bondholder agreement is expected to generate an additional $30 to $40 million in annual cash flow savings through converting amortizing bonds to interest-only payments. The cost of restaurant and factory revenues for company-owned locations and the dough factory decreased by 2.3% in Q3 2025, coming in at $94.6 million compared to $96.8 million in the year-ago quarter.

Co-branding opportunities, like Fatburger/Round Table Pizza, to boost unit economics

Co-branding is a key lever to maximize real estate usage and drive incremental sales, which is a direct value-add to the franchisee. The first dual-branded Round Table Pizza and Fatburger location in California validated this strategy by more than doubling weekly sales and transactions compared to its prior standalone Round Table Pizza format. FAT Brands Inc. has a pipeline of approximately 50 additional co-branded locations in development. In the second quarter of 2025, the company opened three co-branded Marble Slab Creamery and Great American Cookies stores.

High-margin manufacturing of proprietary products for franchisees and third parties

The manufacturing segment, which includes the dough factory, offers a high-margin revenue stream and supports brand consistency. The company is advancing plans for a $75-$100 million equity raise at Twin Hospitality Group Inc., with proceeds intended to fund new unit development, among other uses. A transformative step in the manufacturing growth strategy is the partnership with Virtual Dining Concepts to make Great American Cookies available from Chuck E. Cheese locations nationwide. The company expects factory operations to contribute an additional $5 million in adjusted EBITDA.

Here's a quick look at key financial metrics supporting these value propositions for the third quarter of 2025:

Finance: draft 13-week cash view by Friday.

FAT Brands Inc. (FATBB) - Canvas Business Model: Customer Relationships

You're looking at how FAT Brands Inc. (FATBB) interacts with its two main customer groups: the end consumer and the franchisee. The relationship with the franchisee is key, as the company is aggressively pivoting to a capital-light structure.

The franchisee support model centers on centralized guidance. FAT Brands Inc. operates as a franchisor, collecting royalties and franchise fees across its portfolio of 18 restaurant brands, which collectively span approximately 2,300 units worldwide as of late 2025. A major relationship management action is the strategic pivot to a nearly 100% franchised model, highlighted by the plan to refranchise 57 company-owned Fazoli's locations. As of the third quarter of 2025, approximately 92% of the company's locations were franchised. This shift is intended to reduce operating risk. The company maintains a focus on expansion through this network, backed by a pipeline of approximately 900 committed locations expected to contribute $50-$60 million in incremental EBITDA once they are fully operational.

For the end consumer, relationships are increasingly driven by digital engagement, especially within the snack segment. At Great American Cookies, digital sales accounted for 25% of total revenue in the second quarter of 2025. This digital push is directly tied to loyalty; for Great American Cookies, loyalty-driven sales were up 40% in that same period. Other brands show similar trends, with Round Table Pizza experiencing 21% loyalty-driven sales growth.

Marketing efforts are brand-specific, funded through dedicated pools. For the third quarter of 2025, FAT Brands Inc. reported advertising expenses totaling $12.2 million. This spending varies in relation to advertising revenues received from the system. The company also uses co-branding to enhance customer experience and sales; for example, a dual-branded Round Table Pizza and Fatburger location more than doubled weekly sales and transactions compared to its prior standalone format.

The relationship with the financial community is currently dominated by balance sheet repair. Management is actively negotiating a debt restructuring with noteholders to manage the significant leverage. To support this, the company has implemented a dividend pause, which preserves $35-$40 million in annual cash flow. Furthermore, FAT Brands Inc. is advancing plans for a $75-$100 million equity raise at Twin Hospitality Group Inc. to help pay down debt.

Here's a quick look at the scale of the customer/franchisee base and related financial activity:

The focus on the franchise model is clear through several operational levers:

• Refranchising 57 company-owned Fazoli's locations.
• Co-branding initiatives validating sales increases.
• Centralized operational guidance for brand consistency.
• Digital sales penetration driving customer retention.
• A pipeline of 900 committed units for future franchise growth.

The direct service component, while present at company-owned locations, is intentionally shrinking as the company moves toward nearly 100% franchised operations. This means the direct customer relationship is increasingly mediated through the franchisee network.

Finance: draft 13-week cash view by Friday.

FAT Brands Inc. (FATBB) - Canvas Business Model: Channels

You're looking at how FAT Brands Inc. gets its value proposition-a diverse portfolio of restaurant concepts-out to the customer base across the globe. It's a multi-pronged approach, blending traditional brick-and-mortar presence with modern digital reach. The physical footprint is substantial, built on a franchise-heavy model.

The core physical channel is the global network of approximately 2,300 franchised and company-owned restaurants as of the third quarter of fiscal year 2025. This network spans the 18 restaurant brands the company owns, like Fatburger, Round Table Pizza, and Johnny Rockets. The strategy leans heavily on franchising to scale this physical reach without tying up massive capital, though they still operate some company-owned locations, including the dough factory component of their supply chain.

International expansion is a key channel for growth, often executed through large development deals. For instance, FAT Brands Inc. has agreements to significantly boost its presence in France, which is a critical channel for European penetration. This includes a commitment to open 30 Fatburger locations over the next three years, with five units confirmed for 2026. This is coupled with an agreement for Buffalo's Cafe to open 10 new locations in the country, bringing the total planned new locations for France to 40.

Co-branded locations are a deliberate channel strategy to maximize footprint efficiency and sales per square foot. This approach has shown clear success; the first dual-branded Round Table Pizza and Fatburger location in California has more than doubled weekly sales and transactions compared to the prior standalone Round Table Pizza format. To capitalize on this, there are approximately 50 additional co-branded locations in development. Furthermore, the company opened three co-branded Marble Slab Creamery and Great American Cookies stores during the second quarter of 2025.

Digital channels are increasingly important for customer interaction and revenue capture. This includes leveraging third-party delivery apps and proprietary brand-specific apps. The impact is measurable, especially in the snack segment:

• At Great American Cookies, digital sales now represent 25% of total revenue.
• Loyalty-driven sales at Great American Cookies are up 40%.
• Round Table Pizza is seeing 21% loyalty-driven sales growth.
• Customer engagement at Round Table Pizza is up 18%.

The manufacturing distribution network serves as a crucial backend channel, ensuring consistency and supply for franchisees. The operations related to the company-owned locations and the dough factory are reflected in the cost of sales. For the third quarter of 2025, the cost of restaurant and factory revenues was $94.6 million. A recent strategic move to enhance this manufacturing reach involves a partnership to make Great American Cookies available from Chuck E. Cheese locations nationwide.

Here's a quick look at the scale and growth metrics across these channels as of late 2025:

Finance: draft 13-week cash view by Friday.

FAT Brands Inc. (FATBB) - Canvas Business Model: Customer Segments

You're looking at the customer base for FAT Brands Inc. (FATBB) as of late 2025, and honestly, it's a diverse group, split between the operators who run the restaurants and the capital providers who finance the structure. The core of the business relies on selling the franchise rights to these operators.

The primary customer segment is the multi-unit and single-unit restaurant franchisee seeking established brands. This group is the engine of FAT Brands Inc.'s asset-light strategy. As of the third quarter of 2025, the company franchises and owns approximately 2,300 units worldwide across its 18 restaurant brands. The commitment to franchising is clear: about 92% of those locations were franchised as of September 28, 2025. The company supports this segment with a development pipeline of approximately 900 committed locations expected to open. Furthermore, FAT Brands Inc. is actively working to convert corporate stores, such as the planned refranchising of 57 company-operated Fazoli's restaurants.

Next, you have the consumers across various dining segments. FAT Brands Inc. serves a broad spectrum, owning brands that span quick-service, fast-casual, casual dining, and polished casual dining. For instance, the casual dining segment, which includes Twin Peaks, posted a same-store sales growth of 3.9% in the third quarter of 2025. However, the overall system-wide sales for the portfolio declined by 5.5% year-over-year in Q3 2025, indicating softer performance across some other concepts. The company operates 18 distinct restaurant brands, offering diversification to this customer base.

The appetite of international master franchisees looking for US brand expansion remains a key growth vector. In the first quarter of 2025, FAT Brands Inc. secured new agreements to open 40 locations across France for the Fatburger and Buffalo's Cafe concepts. Also, the Johnny Rockets brand saw significant international traction in 2025, opening seven new locations in markets like Iraq, Chile, UAE, Mexico, and Brazil, bringing the total in those key international markets to over 100 locations.

A critical, though often stressed, segment involves institutional investors and bondholders in the securitized debt market. These stakeholders are focused on the company's capital structure, which is heavily reliant on securitizations. As of late 2025, the company was dealing with acceleration notices for approximately $1.26 billion in securitized debt. The total debt load is significant, reported around $1.57 billion. The financial performance directly impacts this group; for Q3 2025, the net loss attributable to FAT Brands Inc. was $58.2 million on total revenue of $140.0 million for the quarter.

Finally, there is the segment of third-party national restaurant chains for contract manufacturing. This group interacts with FAT Brands Inc.'s manufacturing division, which was acquired as part of the Global Franchise Group transaction. This division provides supply chain efficiencies and incremental revenue. In Q3 2025, the cost associated with the company-owned restaurant locations and the dough factory totaled $94.6 million.

You should review the debt restructuring negotiations, as the company is actively working to reshape its balance sheet to satisfy these capital providers. Finance: draft 13-week cash view by Friday.

FAT Brands Inc. (FATBB) - Canvas Business Model: Cost Structure

You're looking at the cost side of the FAT Brands Inc. (FATBB) operation as of late 2025, and honestly, the numbers tell a story dominated by debt service and corporate overhead, even as they work to streamline things. The sheer scale of the debt load is the most immediate cost factor you see on the income statement.

The high interest expense is a major drain, totaling $41.5 million in Q3 2025 due to the existing debt structure. This is a fixed, heavy commitment you have to service before anything else. Also hitting the bottom line hard are the General and Administrative (G&A) expenses, which hit $42.7 million in Q3 2025. That G&A figure was notably inflated by specific, non-recurring items in that quarter, namely $6.9 million in Smokey Bones store closure costs and a $1.4 million non-cash impairment related to those same closures.

For the direct operational costs tied to company-owned locations and the dough factory, the Cost of restaurant and factory revenues was $94.6 million in Q3 2025. This was actually a slight decrease year-over-year, which management attributed to closing underperforming Smokey Bones locations and converting others.

Here's a quick look at those major cost components for the third quarter of 2025:

The company is actively tackling the debt crisis, which directly impacts future cost projections. The restructuring efforts are designed to chip away at these large, recurring expenses. For instance, securing a bondholder agreement to convert amortizing bonds to interest-only payments is projected to generate an additional $30 to $40 million in annual cash flow savings.

Also, the legal and restructuring costs related to past issues are seeing a sharp reduction. Following the dismissal of DOJ charges in July 2025 and the settlement of two stockholder derivative lawsuits in August 2025, the company expects a sharp reduction in ongoing legal expenditure, with historical out-of-pocket legal costs amounting to about $30 million in the last twelve months being significantly curtailed. Furthermore, the company implemented over $5 million in annual G&A reductions, with management later emphasizing ongoing SG&A reductions of more than $10 million.

Franchisee support and brand development costs are embedded in several line items, but the centralized support structure is key to keeping variable costs down for franchisees. This shared services platform helps control costs by providing functions across all 18 brands. Specific costs related to marketing and development include:

• Advertising expenses were $12.2 million in Q3 2025.
• Guidance provided to franchisees on design, layout, and equipment specification.
• Assistance with locating vendors for proprietary products to ensure cost-effectiveness.
• New Store Opening Teams provide on-site support for successful store launches.
• Providing a Local Store Marketing Guide with promotional ideas.

Finance: draft 13-week cash view by Friday.

FAT Brands Inc. (FATBB) - Canvas Business Model: Revenue Streams

You're looking at the core ways FAT Brands Inc. (FATBB) brings in cash, which is heavily weighted toward the asset-light franchising model, even as they manage company-owned assets and a manufacturing arm. Here's the quick math on the components as of late 2025, based on the third quarter results.

Franchise royalties, the core asset-light revenue source

The steady income from existing franchisees paying a percentage of their sales is the bedrock of the asset-light model. This stream provides predictable cash flow, though it is sensitive to system-wide same-store sales (SSS) performance. For the thirteen weeks ended September 28, 2025, franchise fees, which include royalties, were reported at $1,503 thousand.

Franchise and development fees from new unit openings

Bringing new locations online generates upfront fees and fuels future royalty growth. FAT Brands Inc. reported opening 60 new restaurants year-to-date in 2025, with 13 of those openings occurring in the third quarter alone. The company is focused on a committed pipeline of approximately 900 locations expected to open over the next five to seven years.

Sales from the manufacturing division

The manufacturing segment, which includes the dough factory in Georgia, contributes directly to revenue. This division demonstrated strong profitability in the third quarter of 2025. Specifically, the Georgia production facility generated $9.6 million in sales and $3.8 million in adjusted EBITDA, achieving a 39.6% adjusted EBITDA margin for Q3 2025. Management projects an additional $5 million in adjusted EBITDA from factory operations as they aim to utilize approximately 55% of excess capacity.

You can see how the manufacturing segment's margin stacks up against the overall company performance for the quarter:

Sales from company-owned restaurants, notably Twin Peaks (decreasing due to refranchising)

While the long-term strategy leans toward franchising, company-owned restaurants still generate sales, though this is intentionally shrinking. FAT Brands Inc. is advancing its strategy to return to a nearly 100% franchised model. This includes the planned refranchising of 57 company-operated Fazoli's restaurants. Furthermore, the company is advancing plans for a $75 million to $100 million equity raise at Twin Hospitality Group Inc., which houses Twin Peaks, to fund debt paydown and development, signaling a move to reduce direct ownership exposure in that segment.

Advertising fund contributions from franchisees

Franchisees contribute to a central advertising fund to support brand marketing efforts across the system. While direct contribution amounts aren't explicitly detailed as revenue in the summary data, the scale of the related expense gives you a sense of the fund's size. Advertising expenses for the third quarter of 2025 were reported at $12.2 million.

The company is also preserving $35 million to $40 million in annual cash flow through a dividend pause, which, while not a direct revenue stream, frees up capital that could otherwise be used for debt management instead of funding operations.

• Casual dining segment same-store sales growth was 3.9% in Q3 2025.
• Overall system-wide same-store sales declined 3.5% in Q3 2025.
• Over 190 franchise development agreements were secured year-to-date in 2025.

Finance: draft 13-week cash view by Friday.