Entrepreneurs seeking to invest in the restaurant business often investigate established franchises. For instance, a restaurant like Burger King has both name recognition and branding desirable for anyone with investment capital.
So, just how much is a Burger King restaurant, and is it expensive to get one off the ground? If you have seriously considered investing in a Burger King franchise, read below to learn more!
How Much Is a Burger King Franchise?
Burger King Franchise investment fees start at $50,000 in liquid capital but can range between $2 million to $3 million in initial costs. These costs include service fees and other variables. Additionally, the individual or corporation must have a net worth of at least $1,500,000 to purchase a Burger King restaurant.
If you are looking to invest in the Burger King franchise and wonder about the other costs that may be involved, how to secure loans and other factors, read on!
How Is the Initial Investment Money to Buy a Burger King Franchise Broken Down?
A Burger King franchise is a worthwhile investment, but you will need significant seed money.
To start, you’ll need an initial franchise fee of between $15,000 to $50,000 in liquid capital.
Also, when other aspects are factored in, your total investment would be between $1,877,600 to $3,398,600. This would include working capital of $102,000 – $151,000 alongside a royalty fee of 4.5%.
What Else Will I Need to Buy a Burger King Franchise?
To be considered a Burger King Franchisee, potential US investors must have over $1,000,000 worth of liquid assets.
Investors must also factor in overhead costs like food stocking, machine maintenance, and pre-opening wages.
Additionally, labor, zoning, landscaping, signage, and other variables, are part of the annual cost of owning a Burger King Franchise as well.
Franchise owners must also pay a 4.5% royalty to Restaurant Brands International and spend 4% of their gross sales on commercial advertising.
What Are the Terms of the Franchise Agreement?
To begin the approval process, the investor has to submit verification of their net worth and a structured business plan.
Once all qualifications are met, the Franchisee will sign a 20-year franchise contract.
Also, the contract is renewable once the 20 years lapse. Franchisees must be on good terms with Restaurant Brands International for renewal.
Are There Loans That Help You Invest in a Burger King Franchise?
While banks provide business loans to entrepreneurs looking to purchase a franchise, you must have your own liquid assets to purchase a BK franchise.
Additionally, individuals must be willing to pay for training, travel expenses, and other incidentals themselves.
Moreover, individuals or companies thinking about Burger King Franchise opportunities are encouraged to apply. You can do so by contacting BKNAFranchising@rbi.com for further information.
Is There a Specific Bank that Helps You Buy a Burger King Franchise?
While no specific bank assists with a Burger King Franchise purchase, you can get assistance via Burger King Corporation (BKC), their primary franchisor.
The BKC helps potential franchisees establish credit lines, get franchising licenses, and train.
Further, BKC does not fund or provide funding themselves; instead, they steer investors in the right direction in regards to establishing credit lines. Again, the investor has to bring their own seed money to be considered.
How Much of a Profit Does a Burger King Franchise Return?
The franchise fee is $15,000 on the low end, $50,000 high. These rates are generally concerning location areas, and resulting incomes will match.
Despite this, franchise owners needn’t fret as the profit margin is extremely high after the initial investment.
On average, a Burger King Franchisee can make $1.4 million in sales and $85,000 in profits annually.
What are the Best Locations to Put a Burger King Franchise?
There are both traditional and non-traditional locations to put a Burger King franchise. Traditional sites can include:
- A freestanding Burger King building
- Placement inside a mall
- Resign inside or beside facilities
- Near theme parks and zoos
- Outside of bus and train stations
And many, many more…
Non-traditional Burger King restaurants can be found inside institutions and stores with significant foot traffic. These may include, but not be limited to:
- Convenience stores
- Retail outlets and department stores
- Truck Stops, Gas, and Convenience
- College and University campuses
- Post offices and mail delivery
And numerous other properties…
Bear in mind that where you plan to build your Burger King franchise will likely depend on what your end goals are. Prime real estate costs, so factor this in when budgeting for your Burger King acquisition.
How Can I Make My Burger King Franchise Successful
Burger King franchise owners often partner with corporate headquarters on campaigns that assist in bringing in customers. This usually entails training and the inclusion of national or worldwide advertising.
Afterward, they will give pointers on how to create a grand opening event. Franchise owners also receive constant support for problems via local, national, or international offices by email or toll-free number.
Is Purchasing a Burger King Restaurant Worth it?
As with any type of investment, there’s always risk involved.
Thankfully, Restaurant Brands International has taken the guesswork out of restaurant ownership with a sure-fire template that has worked for decades.
Unquestionably, a Burger King restaurant is worth it if you want to make a surefire income with a beloved brand that is recognized worldwide. Assess all factors involved before moving ahead with your acquisition.