Whataburger, a beloved fast-food chain with roots in Texas, has grown from a single burger stand in Corpus Christi to over 1,000 locations across 15 states. Founded in 1950 by Harmon Dobson, this family-owned and operated business has built a loyal customer base with its mouth-watering burgers and unique flavor offerings.
For entrepreneurs looking to join the Whataburger family, franchise opportunities are available. Opening a Whataburger franchise requires a significant investment, adherence to company standards, and the use of approved suppliers for ingredients and food products. The franchise model has been a key part of Whataburger’s expansion strategy since 1953, allowing the brand to maintain its quality and consistency while reaching new markets.
Potential franchisees should consider factors such as location, startup costs, and ongoing fees when evaluating this business opportunity. While specific financial details may vary, owning a Whataburger franchise can be a path to becoming part of a well-established brand with a strong presence in the fast-food industry.
The History of Whataburger
Whataburger’s journey from a single burger stand to a beloved regional chain spans over seven decades. The company’s growth and evolution reflect its commitment to quality and family values.
Founding and Expansion
Harmon Dobson opened the first Whataburger in Corpus Christi, Texas, on August 8, 1950. His vision was to create a burger so big it required two hands to hold. Dobson partnered with Paul Burton initially, but Burton later operated a separate Whataburger in San Antonio.
The chain’s signature 100% Pure American Beef burgers quickly gained popularity. In 1953, Joe Andrews Sr. became the first franchisee, opening a location in Alice, Texas. This marked the beginning of Whataburger’s expansion.
Dobson continued to grow the business, opening the first out-of-state location in Pensacola, Florida, in 1959. The company’s orange-and-white striped A-frame buildings became iconic landmarks in many communities.
Evolution of the Franchise Model
Whataburger remained family-owned for nearly 70 years, with the Dobson family at the helm. This approach allowed the company to maintain its core values and quality standards as it expanded.
The franchise model evolved to support consistent growth. By 2019, Whataburger had over 800 locations across 10 states. That year marked a significant change when the Dobson family sold their majority stake to BDT & MSD Partners.
Despite new ownership, Whataburger maintained its commitment to quality. The company introduced online ordering in 2019 and expanded its product line. Whataburger-branded condiments became available in retail stores, allowing fans to enjoy the taste at home.
Understanding the Whataburger Franchise
Whataburger franchises offer opportunities to operate a well-known fast-food brand. The franchise model involves specific financial requirements and operational standards.
What Is a Whataburger Franchise?
A Whataburger franchise is a business opportunity to own and operate a Whataburger restaurant. Franchisees gain the right to use the Whataburger brand, menu, and operating systems.
The company has strict financial requirements. Potential franchisees must have at least $5 million in liquid assets and a net worth of $12.5 million.
Whataburger franchises are known for serving quality burgers quickly with friendly service. The brand emphasizes hospitality and maintaining high standards.
Franchise Model Explained
The Whataburger franchise model involves significant initial investments. Total startup costs range from $1.2 million to $3 million, depending on location and restaurant size.
Franchisees pay ongoing fees, including:
- Royalty fee: 4-5% of monthly gross sales
- Marketing fee: 2-2.5% of monthly gross sales
These fees cover brand usage, support, and marketing efforts. Franchisees must adhere to Whataburger’s operational guidelines and quality standards.
The company provides training and support to help franchisees succeed. Franchisees benefit from Whataburger’s established brand recognition and proven business model.
Whataburger Franchise Investment
Opening a Whataburger franchise requires substantial financial commitment. The initial investment and ongoing fees are crucial factors for potential franchisees to consider.
Initial Investment Requirements
The total investment to open a Whataburger franchise ranges from $1.2 million to $3 million. This includes the initial franchise fee, though the exact amount is not publicly disclosed.
Prospective franchisees must meet specific financial requirements:
- Liquid capital: Amount not specified
- Minimum net worth: Amount not specified
The investment covers expenses such as:
- Restaurant construction or renovation
- Equipment and inventory
- Training costs
- Initial marketing
Whataburger carefully selects franchisees based on financial capability and business experience.
Ongoing Fees Explained
Whataburger franchisees are subject to several ongoing fees:
- Royalty fee: 4-5% of monthly gross sales
- Marketing fee: 2-2.5% of monthly gross sales
These fees contribute to:
- Brand usage rights
- Ongoing support from corporate
- National and local marketing efforts
Franchisees should factor these recurring costs into their business plans. The royalty fee compensates Whataburger for the use of its brand and systems. The marketing fee funds advertising campaigns to drive customer traffic and brand awareness.
Franchise Application Process
Becoming a Whataburger franchisee involves meeting specific qualifications and following a structured application process. Prospective franchisees must demonstrate financial capability and business acumen to be considered.
Qualification Criteria
Whataburger seeks franchisees with strong financial backgrounds and business experience. Applicants typically need a minimum net worth of $5 million, with at least $2.5 million in liquid assets. Previous restaurant management experience is highly valued.
Franchisees should be prepared to open multiple locations, usually a minimum of five stores. This multi-unit commitment ensures franchisees are dedicated to growing the brand in their designated territories.
Step-by-Step Application Guide
Initial Inquiry: Submit a preliminary application through Whataburger’s official website.
Financial Verification: Provide detailed financial statements to prove net worth and liquidity.
Background Check: Undergo a thorough review of personal and business history.
Interview Process: Participate in initial phone screenings and in-person interviews with Whataburger executives.
Territory Selection: Discuss potential locations and market opportunities with the franchise development team.
Business Plan Submission: Present a comprehensive plan outlining your vision for operating Whataburger franchises.
Final Approval: Upon successful completion of all steps, receive an official franchise offer.
Training Program: Attend Whataburger’s extensive training program to learn brand standards and operational procedures.
The entire process can take several months to a year, depending on the applicant’s qualifications and the availability of suitable territories.
Operating a Whataburger Franchise
Running a Whataburger franchise involves managing daily operations, training staff, and maintaining high standards of food quality and customer service. Franchisees must follow specific guidelines to ensure consistency across the brand.
Daily Operations and Management
Whataburger franchises operate on a 24-hour schedule, requiring careful staff scheduling and inventory management. Franchisees oversee food preparation, ensuring all burgers are made-to-order using approved ingredients from designated suppliers.
Drive-thru efficiency is crucial, with a focus on quick service without compromising quality. Managers must monitor sales trends, adjust inventory accordingly, and maintain cleanliness standards throughout the restaurant.
Customer feedback is valued and used to improve service. Franchisees are responsible for implementing any brand-wide changes or promotions set by corporate headquarters.
Employee Training and Support
Whataburger provides comprehensive training programs for franchise owners and their staff. New employees learn food safety practices, burger preparation techniques, and customer service skills.
Training covers drive-thru operations, order accuracy, and efficient food delivery methods. Managers receive additional instruction on inventory control, staff scheduling, and financial management.
Ongoing support includes access to operational manuals, marketing materials, and technology systems. Regular evaluations help maintain quality standards across all locations.
Franchisees must ensure their staff adheres to Whataburger’s service philosophy, emphasizing friendly interactions and prompt resolution of customer concerns.
Marketing and Brand Presence
Whataburger’s marketing strategies focus on building strong brand recognition and customer loyalty. The company leverages its iconic orange-and-white striped imagery and regional identity to create memorable campaigns across various channels.
Advertising Strategies
Whataburger’s advertising emphasizes its Texan roots and commitment to quality. The brand’s distinctive orange-and-white striped buildings feature prominently in marketing materials, reinforcing visual recognition. Television commercials often showcase the chain’s signature items like the Whataburger and Patty Melt.
Print ads and billboards frequently utilize witty slogans that play on the brand’s name, such as “What a burger!” Regional campaigns target local tastes and preferences, helping maintain Whataburger’s strong connection to its home markets.
Radio spots and sponsorships of local events further strengthen community ties. The company also partners with sports teams and universities to increase visibility among key demographics.
Social Media and Online Engagement
Whataburger maintains an active presence on major social media platforms. The brand’s Twitter account boasts over 418,000 followers, while its Instagram following approaches 100,000. These channels serve as hubs for customer interaction and brand promotion.
The company regularly reposts user-generated content, encouraging fans to share their Whataburger experiences. This strategy fosters a sense of community and amplifies brand loyalty. Social media contests and hashtag campaigns drive engagement and increase visibility.
Whataburger’s website offers online ordering and a mobile app, enhancing convenience for customers. The site also features a blog with company news, recipes, and behind-the-scenes content, providing additional touchpoints for brand enthusiasts.
Email marketing campaigns keep subscribers informed about new menu items and promotions. The company’s digital efforts complement its traditional advertising, creating a cohesive multi-channel marketing approach.
Product Offerings
Whataburger’s menu features a diverse array of classic American fare centered around their signature burgers. The offerings extend beyond beef patties to include breakfast items, chicken sandwiches, and desserts.
Burger Menu Highlights
Whataburger’s flagship item is the Whataburger, a 100% American beef patty on a toasted 5-inch bun. The menu includes variations like the Whataburger Jr. and the triple-meat Whatachick’n. Cheese lovers can opt for the Monterey Melt with two beef patties and jalapeño ranch. For a twist, the Avocado Bacon Burger combines creamy and crispy textures.
Customization options allow patrons to add or remove toppings, choose bun types, and adjust patty counts. Whataburger also offers limited-time specials that rotate seasonally.
Breakfast and Beyond
Whataburger serves breakfast from 11 p.m. to 11 a.m. daily. The Breakfast on a Bun features a choice of sausage or bacon with egg and cheese. Taquitos, filled with eggs and various proteins, are a popular morning option.
Beyond breakfast, the menu includes chicken sandwiches, fish sandwiches, and salads. For dessert, Whataburger offers shakes, cookies, and fruit pies. The Dr Pepper Shake is a unique regional favorite.
Sides include classic French fries, onion rings, and apple slices for health-conscious customers. Whataburger also caters to different dietary needs with options like the grilled chicken sandwich.
Financial Performance and Growth
Whataburger has experienced significant financial success and expansion in recent years. The company’s strong brand recognition and loyal customer base have contributed to impressive sales figures and steady growth.
Economic Impact
Whataburger’s economic impact extends beyond its own profits. The franchise creates jobs and stimulates local economies where its restaurants operate. With over 800 locations, Whataburger employs thousands of workers across multiple states.
The company’s expansion plans indicate a positive outlook for future economic contributions. Whataburger aims to open 15 new locations in 2020 alone, with further growth projected in subsequent years.
Sales and Profitability
Whataburger’s annual sales have surpassed the $1 billion mark, demonstrating its strong market position in the fast-food industry. The franchise model contributes to this success, with 127 franchised locations complementing the 703 company-owned stores.
Franchise profitability varies based on factors such as location and operational efficiency. Initial investment costs range from $1.2 million to $3 million. Ongoing fees include:
- Royalty fee: 4-5% of monthly gross sales
- Marketing fee: 2-2.5% of monthly gross sales
These fees support brand usage and franchisee support services. Franchisees can potentially improve profitability by focusing on customer service, optimizing operations, and staying updated on industry trends.
Expansion Opportunities and Locations
Whataburger is actively pursuing growth beyond its Texas roots, with plans to open numerous new locations across the United States. The company aims to bring its iconic burgers to fresh markets while creating franchise opportunities for aspiring restaurateurs.
Current Franchise Locations
Whataburger currently operates over 700 locations spanning 10 states. Texas remains the chain’s stronghold, with a significant presence throughout the Lone Star State. Florida has emerged as a key growth area, with restaurants in Jacksonville and plans for the Tampa Bay region. Other states with Whataburger locations include:
- Arizona
- Arkansas
- Alabama
- Louisiana
- Mississippi
- New Mexico
- Oklahoma
The company’s expansion strategy focuses on building a strong regional presence before moving into new territories.
Target Markets for Expansion
Whataburger has set ambitious goals for growth, targeting dozens of new locations by 2027. The company is particularly interested in:
- Southeast: Expanding further into Florida and entering Georgia
- Midwest: Exploring opportunities in states bordering current markets
- Southwest: Strengthening presence in Arizona and New Mexico
For the first time in nearly two decades, Whataburger is offering franchise opportunities. This approach will accelerate expansion efforts, allowing the chain to enter new markets more quickly and efficiently. Potential franchisees can expect support in site selection, training, and ongoing operations to maintain Whataburger’s high standards.
Legal and Regulatory Considerations
Franchisees must navigate complex legal and regulatory landscapes when operating a Whataburger franchise. Compliance with laws and adherence to franchise agreements form the foundation of a successful franchise relationship.
Compliance with Laws
Whataburger franchisees must comply with federal, state, and local laws governing food safety, employment, and business operations. The FDA Food Code sets standards for food handling and preparation. Franchisees are responsible for obtaining necessary permits and licenses to operate their restaurants.
Health inspections are conducted regularly to ensure compliance with sanitation standards. Franchisees must train staff on proper food safety protocols and maintain accurate records.
Labor laws, including minimum wage requirements and overtime regulations, apply to franchise employees. Franchisees must also adhere to anti-discrimination laws in hiring and workplace practices.
Franchise Agreements
The franchise agreement outlines the legal relationship between Whataburger and its franchisees. It specifies the rights and obligations of both parties.
Key elements include:
- Territory rights
- Use of trademarks and branding
- Royalty and marketing fee structures
- Operating standards and procedures
- Duration of the agreement
- Renewal and termination conditions
Franchisees must follow Whataburger’s operational guidelines to maintain brand consistency. This includes using approved suppliers, following menu specifications, and adhering to quality control measures.
The agreement may also cover dispute resolution procedures and non-compete clauses. Franchisees should carefully review and understand all terms before signing.
Success Stories
Whataburger’s franchise model has propelled numerous entrepreneurs to remarkable achievements. The company has also garnered significant industry recognition for its performance and growth.
Franchisee Achievements
Joe Andrews, Whataburger’s first franchisee, paved the way for success in the 1950s. His daughter, Kathy Andrews Reese, shared insights into the early excitement surrounding the brand. Many franchisees have since built thriving businesses.
Some operators have expanded to own multiple locations across Texas and beyond. These franchisees have created jobs, supported local communities, and generated substantial revenues.
Successful operators often cite Whataburger’s strong brand recognition and loyal customer base as key factors in their growth. The company’s commitment to quality ingredients and friendly service has helped franchisees maintain high customer satisfaction.
Company Awards and Recognition
Whataburger has received numerous accolades for its performance in the fast-food industry. In 2018, the company ranked 31st on Technomic’s list of the top 500 largest restaurants in the U.S., with $2.4 billion in revenue.
The brand’s growth continued, leading to its inclusion on the 2023 Franchise Times 400 list. Whataburger secured the 34th spot, with systemwide sales exceeding $3 billion from 925 locations.
Industry experts have praised Whataburger’s ability to maintain its Texas identity while expanding. The company’s collaborations with other iconic Texas brands, such as James Avery jewelry, have further solidified its cultural significance.
These achievements highlight Whataburger’s strong position in the competitive fast-food market. The brand’s consistent growth and recognition demonstrate its enduring appeal to both franchisees and customers.