Burger King Franchise Cost & Profit Opportunity Review

March 26, 2019


Has anyone ever told you ‘this isn’t Burger King; you can’t have it your way’? Well, you can if it is Burger King. Even better, you can have it your way even more if you are a franchise owner for this company. Which many people are beginning and continuing to consider. But that’s no surprise.

 

Having your own business can be fun and rewarding. But it can also be pretty hectic. When you decide on franchising with a company rather than building your own business from scratch, it gets a little easier. Mainly because you won’t have to worry about the branding as much.

 

With Burger King, you most definitely won’t have to worry about finding a loyal customer base since it’s one of the most well-known and established fast food restaurants around.

 

Home of the Whopper and other amazing tasting sandwiches, this fast food joint is one that everyone knows by name. And it’s obvious as to why it would make an easy franchise business. Not that you won’t have to work for it. But it’s already well-established and ready to go.

 

But there are still a few things that you will have to keep in mind before making the decision to go with Burger King. Even though we all already know how amazing the franchise is. But let’s not get ahead of it ourselves here.

 

We have to go over the details and requirements to see if it’s even a good personal fit for your needs. And if it is, then you can get started with the application process. But before you do that, let’s check out the details on this company’s franchise opportunity.

Have it Your Way

If you want a good, flame grilled burger, then the obvious place to go would absolutely be Burger King. It’s the second fastest growing and largest fast food burger chain in the entire world. Where over 10 million people visit every single day across the world.

 

But why? Is it because it’s cheap and tasty. Most likely. But it’s also been around for so long that they have established a fantastic reputation that shows just how great they truly are.

They have always remained committed to serving premium ingrediens that are fresh and put out in the store daily. With delicious beef that has no fillers; it’s the crown standard. And it’s been working for over 50 years, so it won’t be changing anytime soon.

 

Whether it’s a quick bite to eat while on your work break or you ran out of time to feed the kids before their soccer practice, it’s a fas and affordable fast food joint that gets you in and out and ready to go.

 

And with the popularity of this restaurant and the fact that everyone knows its name, it makes for a great franchise business opportunity. However, there are a few things we have to cover before you go deciding on this company for your new business.

 

After all, you wouldn’t want to make any final decisions just because the name is well-known and loved, right? So let’s take a look at those franchise details and you can make the decision for yourself whether or not to pursue this opportunity.

Franchising with Burger King

Burger King is an obvious grea choice for good food and good business. But how well has it actually done in the past and what are they willing to offer you when you become a franchise owner?

 

To be completely honest, this company has seen an extreme amount of growth within a six-year time frame and I’m not seeing it slow down anytime soon. Ever since the opening of the business back in 1954, there has been an explosion of growth. And now, there is nearly 10,000 Burger King restaurants across the nation.

 

Back in 2010, there were a total of 6,380 franchise locations. In 2016, that number grew to 7,105 operating franchise locations. It’s a pretty big jump for over six years. But how do they measure up when we look at the turnover rate?

 

Not too shabby, actually. Burger King’s turnover rate is pretty low at 7.21; which could indicate that this is a healthy business opportunity. Meaning that there hasn’t been too many terminations or non-renewals to the agreement. However, to understand extactly why this rate is what it is, you will have to ask the company some direct questions.

 

You might want to ask something like: how many terminations or ceased operations have there been in the past x amount of years? Or, how many franchise locations are currently operating right now?

 

With this extra information, you can grasp a better idea on how well the franchise business has gone for previous owners. But the good news is that when you franchise with this company they provide you with financial transparency that will also assist you in figuring out certain things about the business.

 

You will receive information on the median and average revenue numbers that will be broken into quartiles, system-wide average revenue information, sales numbers from the locations owned by the company, and a variety of other metrics that are related to this industry.

 

That’s a pretty high level of transparency. And not every company is willing to go that far to provide you with that much information. So, consider this a blessing.

What’s Expected of You

We all know that businesses cost money, but how much? It’s not really a simple answer, since there are usually so many hidden fees and costs. But for the most part, when you franchise a business, you are told the fees up front and what the fees are for.

With Burger King, the initial franchise fee is anywhere from $15,000 to $50,000 with a total investment of between $317,100 and $3,046,600. This initial fee gets you a 20-year contract agreement as a franchise owner through the company. You then have the option to renew the agreement for 20 years more.

 

During your agreement, you are responsible for ongoing fees that will be paid based on your gross revenue. There is a 4.5% royalty fee and a 4% advertising fee. Both of which aren’t too high for this industry.

 

And if you don’t have the whole franchise fee up front, the company offers finance options to help you out. Again, that’s another thing that most companies won’t offer. That and a refund under certain circumstances.

 

So, I truly believe that this is an honestly incredible franchise opportunity. Especially if you are looking for a company that offers decent perks and trains you properly. These are all great options to take advantage of, but it always depends on you.

Take it To-Go

You are always the determining factor of your own success. Sure, if you get a business that was already sinking, then it could be doomed from the start no matter what. However, if you keep the passion alive and stay dedicated to providing the absolute best service, then you should be golden.

 

There will always be both negatives and positives about every company and their franchise business opportunity. But will the positives outweigh the negatives?

 

Burger King seems like the perfect starting franchise opportunity for aspiring entrepreneurs. It’s a restaurant that many people go to and love. So it’s got a reputation that will be lasting. Can you keep up with it?

 

It doesn’t seem to have too many risky attributes to this opportunity. The price is average and the benefits are perfect. Even the growth is looking fantastic. Not to mention the fact that it’s a company that everyone seems to love.

 

If you are considering this company for your new franchise business, then contact the company and get started on applying and learning everything there is to operating this business. You could be the next Burger King franchise owner in your neighborhood.

Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}