Wanna "Have It Your Way"? What's The Cost Of Starting A Burger King Franchise?Burger King enjoys name recognition across the country. In fact, it is among the most popular restaurant icons in the entire world. A recent study showed they ranked 7th among best restaurant chains in terms of customer service and satisfaction (behind Starbucks, Wendy’s, and several pizza franchises). Best known for “The Whopper”, BK has been winning over fans with its flavorful hamburgers and tasty French fries. But what would it actually cost to purchase a Burger King restaurant or even open up a franchise?
Having it your way is costly business; to qualify for a franchise, you must be worth 1.5 million. You also have to have a third of that worth in the form of liquid assets. Actually, you don’t see a lot of new Burger King’s opening up. When a franchise is unsuccessful in an area, you may see new owners buy it out and try a new strategy. That’s because it costs less than building one from scratch. Also, there’s the risk of that recently closed restaurant being bought up by someone else and turning into a competitor.
Also, just because you have the cash doesn’t mean BK will let you sell their products. They have a reputation and must make sure you will properly uphold the company image. This means they require you to have experience in entrepreneurship. They prefer if you’ve handled multiple restaurants in a fast-paced environment. Your success level at past ventures is key—if you’ve been a dismal failure in past tenures in fast food, you can kiss your chances of “having it your way” good-bye. It may be best to team up with a business consultant to map out a strategy and determine if you have what it takes.
Next, there’s training. If Burger King headquarters feels you have potential, they will train you on the procedures and policies of being a representative of their establishment. Those with more experience in fast food will need less training. Overall, you’re looking at roughly two weeks of orientation and anywhere from a month to several months of classroom, on-site, and restaurant training.
If you do meet the qualifications, go through the training, and decide to fully commit to it, there is good news ahead. The royalty fees are fairly low. You only have to pay out 8.5% of the total gross cashflow (4% for corporate ads and 4.5% to the headquarters). So basically, over 90% of what you take in at your business, minus the actual business costs, is all yours!
To find out more or view an application, the best place to go is the Burger King’s website, www.bk.com.
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