John Janick initially conceived of the label while attending high school, but it was not until he enrolled at the University of Florida in Gainesville and teamed up with Less Than Jake drummer-lyricist Vinnie Fiorello that Fueled By Ramen became a reality. The name of the label was inspired by only being able to afford a diet of inexpensive ramen at the time, due to having invested most of their money into making records.
In 2007, the label opened an office in midtown Manhattan and that same year Paramore's album Riot! debuted in the top 20 of the US Billboard 200, was certified gold and a year later gained platinum status. Panic! at the Disco's second studio album Pretty. Odd. achieved similar success, debuting at number 2 on the Billboard 200 chart, selling over 139,000 copies its first week, and gaining platinum success. Later in 2016, Panic! at the Disco's fifth studio album Death of a Bachelor debuted at number 1, selling 196,201 copies in its first week, making it the fastest-selling album in the label's history.