Nothing is better than finding a good old fashioned restaurant that has been around for decades. The 1930’s to be exact. Biting into a burger that has decades of flavors and dedication packed into the recipe.
It would be a dream to be a part of a business, or even better, run a part of the business, that has been operating for so long.
Lucky for you, franchising for Steak ‘n Shake has been up and running since 1991, and they don’t seem to be going anywhere soon. One of the important aspects that you should look for when checking into a company for franchising, is the length of time that they have been in business.
And with Steak ‘n Shake’s wonderful and long reputation, you can be sure to count on this establishment to be around for years to come. So, if you’re looking for a well-established restaurant to start franchising, this opportunity is calling your name.
But it’s not all about the reputation, right?
You’re here for more than that.
You want to know the dirty details on the opportunity and learn everything you possibly can before getting into a life-changing venture.
Well, my friend, it’s about to get real. So, buckle up and get ready, because we are about to dive in on this franchise opportunity so that you can figure out if it’s a good fit for you personally.
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Steak ‘n Shake Style
Since the beginning of the 1930’s, Steak ‘n Shake has been dedicated to providing excellent service, along with the finest shakes and steak burgers.
What could be better than having a juicy burger and fries parted with your favorite flavored milkshake?
The founder of Steak ‘n Shake agreed and built one of the best burgers and shake shacks around. It’s now marked as a favorite spot for millions across America and the company just keeps growing.
In 1991, the founder decided on opening up the franchise opportunity so that entrepreneurs could have the chance to spread their love for Steak ‘n Shake by investing into and running their own franchise.
Those with the passion and desire to spread the name of this wonderful establishment can now jump in and start profiting on their own business with this well-known company.
Sounds pretty great, right?
But what about the nitty-gritty details?
Ok, Ok, let’s go.
Details on Current Franchise Outlets
There are many factors that could make or break your decision to franchise a company. And fortunately, there is enough information on the internet that can give us some insight into the company.
This way, you never have to go into any decision without understanding the basic details on the franchise opportunity.
What kind of basics am I talking about?
The growth of the franchise outlets, the turnover rate (which can greatly affect your decision), and financial transparency. These three aspects are crucial to figuring out if the company is worth the investment.
So where does this business stand with these statistics?
In 2010, Steak ‘n Shake had 71 running franchise outlets. That number grew by 62 outlets within 5 years, turning that number into 133 running outlets by the end of 2015.
This amount of growth shows interest in the company, and also shows that there were most likely not as many terminations or non-renewals. To understand these numbers completely, it’s a good idea to ask the company:
How many franchises closed?
Is the net growth in the positive or negative?
And, how many new franchises have opened?
This brings us to the turnover rate.
A turnover rate is calculated by totaling the number of transfers, non-renewals, terminations of the agreement, and other specifics. This total number is then divided by the current number of franchises that are running.
Whether or not this number is high or low, can determine if the business is on the road to success or if it might be a fail in the end. Steak ‘n Shake has a turnover rate of 5.4, which is still in the lower range. Depending on the reasoning, this could definitely be a good thing.
Unlike many other establishments, Steak ‘n Shake offers a high level of financial transparency with their franchisees.
For more clarity, the company offers data on the top performing locations, quarterly average revenue details, sales number from locations that are company-owned, and sales data from previous years.
This level of transparency is extremely helpful for current and future franchise outlets.
Requirements for the Opportunity
Now that you have an understanding of the basics on franchising Steak ‘n Shake, let’s talk about the requirements and fees that you’ll have to dish out for the opportunity.
I’ll just jump right in and tell you; the franchising fee for this company is currently anywhere between $25,000 and $40,000. Which honestly, that isn’t too bad for getting started.
However, the total investment is calculated at around $460,000 to $2.7 million. That range is very extreme and probably depends on certain factors such as the location of the restaurant.
When you sign into an agreement as a franchise, you are agreeing to 20 years for the initial term. But luckily, they only require 5 years for renewal agreements.
So although that initial term is quite lengthy, it will certainly give you time to build your business and start earning reputation and money at your location.
While we are talking about the agreement term, I might as well let you in on the extra fees that you’ll be in charge of paying. The ongoing royalty fee is currently marked at 5.5% and they also require a 4% advertising fee from their franchisees.
Though the ad fee is a little high, the royalty fee is decently low compared to the competitors’ fees.
Living the Dream
There will always be a bucket full of positives and negatives when testing out a franchise opportunity. Not all opportunities are built the same.
And you should be happy about that. Lucky for you (if you’re interested, that is), Steak ‘n Shake offers an incredible opportunity for opening a franchise.
They not only have some of the most well-known steak burgers and shakes that have been around for over 80 years, but they also provide passion and are excited to build with other passionate entrepreneurs that are up for the challenge.
So now the only question is, do you have what it takes to become the next owner of a franchise outlet for Steak ‘n Shake?
Lead Generation Vs Franchising Business: Which Is A Better Option In 2019?
This sounds obvious, however, I’ll dig into the details here. In a franchising business, you need to have around $100,000 at least or high as much as million dollars for the initial startup. That is if you have the money and you can afford it, you can jump into it right away.
Before the company gives you the franchising authority, you need to comply with their requirements including the comprehensive market research including the location and such stuff.
Apart from the hassle, you’ll go into prior to the operation, you need to undergo a series of training to make sure they’re satisfied with the quality control you’re going to implement in your franchise.
Here’s the thing, it sounds exciting at first. Yet, in the end, it will exhaust you. Seriously, I’ve been into different kinds of businesses you can think of. I’m a businessman by nature. I love doing business and talking about it.
In the long run, especially if you’re not satisfied with the ROI or your return of investment you initially expected, you’ll burn out. You’ll be drained. Not including how the amass of work you have to do every single day, affecting your life and your social circle afterward.
I’ve experienced that myself. So, I understand what hell you’re going through when you decide to do this option. That’s why I’m giving you what I did to make sure I place myself in a position right now.
As a man earning $600,000 annual in residual income, I can say getting into the lead generation business is the best option to start this year. Because of its scalability, you don’t need to spend so much money on initial startup as it only costs you a few hundred dollars.
Since we’re talking about online business here, all you need is your laptop, a good internet connection, and yourself, possessing the High-Income Skill you’ll develop as you through the lead generation coaching program. We’ll talk about it in a while.
Why is the lead generation so important nowadays?
Today, there are more and more customers lurk around the internet looking for something to buy or a service for them. In fact, there are more and more mobile users spend so much time on the web. This is the reason why Facebook took advantage of this consumer behavior and created an advertising platform every small business can utilize for their own.
However, as per observation, it doesn’t work really well unless if you have the manpower to create a series of Facebook ads for split testing. Out of 20 ads you created, only 10 of them will work and the rest won’t. That’s how the basic Facebook ad works actually.
Apart from that, these kinds of marketing interrupt the consumers from whatever they’re doing. The lead generation doesn’t encourage that. Rather, attraction marketing is the sole purpose of its existence. Every small business needs high-quality customers to make sure they’re going to earn a steady amount of monthly income or high, if possible. Only lead generation can do that to them.
This is basically why they’re willing to pay in exchange for the access of these leads we’re gathering through our lead gen sites operating on the web right now. They want these leads—their bread and butter—to survive and to have a better life by having more customers. That’s what they want.
Here’s what I did for my first lead gen site. I created this simple website for a Limo company in Lansing, MI for around 6 hours in exchange of $750 monthly paycheck.
For 4 years, I haven’t touched anything on the site since I made it for them. Seriously. To date, I earned $36,000 in 2019 and I’m pretty sure I’ll earn the same amount in the next 10 years.
This what makes the lead generation business viable. It’s a long-term business plan, actually a thriving business model, you can utilize. The thing that keeps me going is being able to help other struggling small business owners desperate for these leads. It gives me purpose.
Rather spend my time working for someone else or for someone else’s brand, why not build my own online business and become a big help to these groups of people?
If not because of the lead generation coaching program, I couldn’t be where I am now. That’s why I am giving you this option to try and see yourself the great results I’ve been talking about. In 2019, I am earning $50,000 monthly in residual income with 88 lead gen sites operating.
What you’re getting in our program are the following:
- The High-Income Skills, which gives you the chance to hone your financial confidence to the point you’re not worrying about losing your digital assets nor being robbed because you know how to build your wealth quickly. Even if you invest in franchising, you’re going to apply the same principle to promote your own business online effectively.
- The EXACT blueprint en route to your 6- to 7-figure in residual income through building lead generation sites, which will become your digital assets, operating and generating leads for your clients.