Should I open or buy a Shake Shack franchise in 2027?
You generally cannot buy a Shake Shack franchise in the United States. Shake Shack's own Bring Shake Shack to Your Area page (archived February 18, 2026) says the company does not franchise within the U.S. and has no plans to, and that outside the U.S. it works with exclusive partners who license and operate Shacks in their countries. Its fiscal 2025 Form 10-K matches: of 659 Shacks at December 31, 2025, 373 were company-operated and 286 were licensed, and the 10-K calls those licensed Shacks, not franchised ones.
That means there is no Shake Shack franchise fee, royalty or investment range for an individual to quote, and this page does not invent one. Shake Shack publishes no U.S. franchise offering, so numbers you see on third-party sites are not from the company. What does exist is a licensing business built on a limited number of large operating partners, such as airline, casino and international hospitality groups, rather than individual owner-operators. If you want to own a burger restaurant, the realistic routes are a better-burger brand that actually sells franchises (a few are compared below) or a licensing-scale partnership, which is a corporate deal rather than a small-business purchase.
This is not financial advice. Read any franchisor's Franchise Disclosure Document and talk to a franchise attorney before you pay or sign anything.
What Shake Shack says about franchising
Shake Shack's Bring Shake Shack to Your Area page, read in an archived copy dated February 18, 2026 because the live site blocked automated access, states it does not franchise within the U.S. and has no plans to do so. For other countries it says it works with exclusive partners who license and operate there. The page is aimed at landlords and brokers proposing real-estate sites, not at people wanting to buy a restaurant.
The company's fiscal 2025 Form 10-K describes two kinds of Shacks, company-operated and licensed. It mentions franchised restaurants only when describing competitors, not Shake Shack's own Shacks.
- Shacks system-wide, Dec 31, 2025659
- Company-operated Shacks373
- Licensed Shacks286
- Shake Shack U.S. franchise offeringNone: the company says it does not franchise in the U.S.
- Shake Shack franchise fee or investment rangeNot published (no franchise offering)
How the licensed model works
Shake Shack's Q4 2025 shareholder letter breaks the 286 licensed Shacks into 47 domestic and 239 international, across 20 markets. Shake Shack's licensing income is a percentage of the licensed Shacks' sales plus up-front items such as territory fees, opening fees and termination fees. The licensee runs the restaurants; Shake Shack does not book their sales as its own revenue.
The company's February 26, 2026 results release reports $54.1 million of licensing revenue for fiscal 2025, against $1,445.3 million of total revenue. The shareholder letter says it opened 40 new licensed Shacks in 2025 and expects to open 40 to 45 more in 2026.
- Domestic licensed Shacks, Dec 31, 202547
- International licensed Shacks, Dec 31, 2025239
- Licensing revenue, fiscal 2025$54.1 million of $1,445.3 million total revenue
- Licensed openings, fiscal 202540
- Licensed openings expected in 202640 to 45
The 10-K lists a risk factor titled "We rely on a limited number of licensees for the operation of our licensed Shacks." It also says the company has limited control over how those Shacks are run, which is why partner choice matters to it.
Who the licensees are
The 10-K describes the strategy as entering high-volume destinations through experienced operators. Its named examples are not individuals:
- Airline and travel venues. The 10-K says Shake Shack is now served on select Delta Air Lines routes from 13 domestic airports, and that it expanded in major airports and travel plazas.
- Casinos. The 10-K cites a licensing agreement with PENN Entertainment to bring Shake Shack to 10 U.S. casino properties.
- A regional operator. It cites new licensing agreements with Union MAK Corporation to bring Shake Shack to Hawaii.
- International operators. It cites a plan to open 15 Shacks in Vietnam with Maxim's and a 12-Shack partnership in Panama with Grupo Attie-Multifood Enterprises, and says 36 new licensed Shacks opened across 12 countries in 2025.
Every example is a company with existing operations and access to real estate in a specific territory or venue type. None is described as an individual buying a single unit.
What this means for an individual investor
- There is no unit to buy. With no U.S. franchise offering there is no Franchise Disclosure Document to read, so you cannot compare Shake Shack's fees against another brand's.
- Licensing is a corporate deal. The model targets operators that can build several Shacks in a market or venue. If you represent a large hospitality, travel or casino operator, the route is Shake Shack's licensing team, not a franchise application.
- Be skeptical of broker offers. A broker or website promising a Shake Shack franchise, with specific fees, is contradicting the company's own page. Check with Shake Shack directly before sending money.
- Owning the stock is different. Shake Shack is publicly traded and its 10-K is free to read. That is an investment in the company, not ownership of a restaurant, and this page does not give investment advice.
Better-burger franchises that do sell units
If your goal is a premium-burger restaurant you can own, these brands publish franchise terms. Figures come from each brand's own site or the Franchise Times Top 400 listing, and each brand's current FDD governs. They are examples, not a ranking.
- Wayback Burgers: initial franchise fee$35,000 for the first franchise
- Wayback Burgers: royalty and ad fee6% royalty and 4% advertising fee, of gross sales
- Wayback Burgers: Item 7 total$256,000 to $859,000 (approx.)
- Wayback Burgers: liquid capital and net worth$250,000 liquid; $500,000 or more net worth
- Freddy's: franchise fee and royalty$35,000; 5% (franchisor-provided, Franchise Times)
- Freddy's: investment range$794,254 to $2,327,329 (franchisor-provided)
- Freddy's: units582 total units, 542 U.S. franchised
- Smashburger: locations176
- Smashburger: stated requirements$2M+ net worth; $500K liquid assets
- Wayback Burgers. Its startup-cost page lists the $35,000 first-unit fee, 6% royalty and 4% advertising fee, and an Item 7 total of $256,000 to $859,000, while its FAQ gives a typical investment of $550,000 to $650,000. The two official figures differ, so use the current FDD.
- Freddy's Frozen Custard & Steakburgers. The Franchise Times Top 400 listing, dated September 30, 2026, shows a $35,000 franchise fee, 5% royalty and a franchisor-provided investment range of $794,254 to $2,327,329. Its own editorial range on the same page is $785,936 to $1,198,665, so the sources disagree.
- Smashburger. Its franchise page lists 176 locations and asks applicants to meet $2M+ net worth and $500K liquid assets. It does not state fees on that page; ask for the FDD.
How to evaluate any burger franchise
- Get the FDD. Federal rules require franchisors to give you the Franchise Disclosure Document before you sign or pay. Read Items 5, 6, 7, 19 and 20.
- Compare royalty plus ad fund on the same sales base. A 6% royalty plus a 4% ad fee is not the same as a 5% royalty, so put every fee on one line.
- Call current and former franchisees. The FDD lists franchisee contacts. Ask about real sales and costs, not the brochure.
- Hire a franchise attorney and an accountant. Have both review the contract and your pro forma before you commit.
Questions people ask
Can I buy a Shake Shack franchise?
Not in the U.S. Shake Shack's own page says it does not franchise within the U.S. and has no plans to. Outside the U.S. it works with exclusive partners who license and operate Shacks.
How much does a Shake Shack franchise cost?
Shake Shack publishes no franchise fee, royalty or investment range because it has no U.S. franchise offering. Figures on third-party sites are not from the company.
Are Shake Shacks company-owned?
Mostly. At December 31, 2025 the 10-K reports 659 Shacks: 373 company-operated and 286 licensed.
What is a licensed Shake Shack?
A Shack run by a licensee under a license agreement. The Q4 2025 shareholder letter counts 47 domestic and 239 international licensed Shacks, and says licensing income is a percentage of sales plus fees such as territory and opening fees.
Who runs the U.S. licensed Shacks?
Operators in venues such as airports, travel plazas and casinos. The 10-K names Delta Air Lines routes from 13 airports, PENN Entertainment for 10 casino properties, and Union MAK Corporation for Hawaii.
What are good alternatives to a Shake Shack franchise?
Better-burger brands that sell franchises, such as Wayback Burgers, Freddy's and Smashburger. Compare each brand's current FDD, not a summary.
Sources
- Shake Shack: Bring Shake Shack to Your Area (archived Feb 18, 2026) · Statement that the company does not franchise in the U.S. and uses exclusive licensing partners abroad
- Shake Shack Inc. Form 10-K, fiscal 2025 · 659 Shacks, 373 company-operated, 286 licensed; licensee risk factor; Delta, PENN, Union MAK, Maxim's, Grupo Attie
- Shake Shack Q4 2025 shareholder letter · 47 domestic and 239 international licensed Shacks, 20 markets, licensing revenue basis, 2026 licensed openings guidance
- Shake Shack Q4 and fiscal 2025 results release (Feb 26, 2026) · Licensing revenue $54.1 million; total revenue $1,445.3 million
- Wayback Burgers: startup cost page · Franchise fee, royalty, ad fee, Item 7 total, liquidity and net worth
- Wayback Burgers: franchising FAQ · Typical investment range
- Franchise Times: Freddy's, Top 400 2026 · Units, fee, royalty and investment ranges (Sep 30, 2026)
- Smashburger: franchise page · Locations and net worth and liquidity requirements
Figures were read from Shake Shack's fiscal 2025 Form 10-K, Q4 2025 shareholder letter and results release, an archived copy of its Bring Shake Shack to Your Area page, and the franchise pages named above on November 7, 2026. Shake Shack's live site blocked automated access, so its franchising statement was read in the archived copy. Fees and ranges change with each FDD. This is not financial advice; talk to a franchise attorney before you sign.
Top photo: Mario RM / CC BY-SA 2.0 via Wikimedia Commons