Top 4 Reasons to NOT Buy a Burger King Franchise

Some people prefer the Mac, some the Whopper but what about from an investment perspective? Is Burger King a good franchise investment? We'll look at that today on Franchise City.
Taken from their 2018 franchise disclosure documents it will cost between $323,100 and $3.102,600 to open a Burger King location of your own. Keep in mind however that lower number is nowhere near actual average costs so you should be prepared to invest well over a million for a traditional location.
The company that would become Burger King started back in 1953 in Jacksonville FL and was initially started as Insta-Burger King. It's interesting back then the quick serve restaurant model was considered unique and ads like this one pointed out the benefits of no tipping! Today we just take that for granted. Back then a burger would set you back 18 cents add some cheese for a nickel.Still think inflation is not a problem?

#2 Remodel costs. Burger King mandates that stores must be remodeled regularly to meet existing branding initiatives. And frankly updated stores have proven to be more profitable. They are cleaner and people prefer to sit in a nice place. Especially when rats haven't gnawed on the buns. But who do you think pays for the remodel? That would be you - the franchisee. Burger King remodel costs are higher than many other brands, they'll cost between $300,000 to $600,000 each store, we've typically seen about $500,000 as the norm. You have to sell an awful lot of 89 cent pancakes to cover that.
Number 3 is profits. When you consider you just dropped about 1.5 million Burger King is not very lucrative comparatively. The average sales for a Burger King restaurant are only 1.3 million when we look here at the QSR50. That number is almost 1.3 million dollars a year lower than McDonald's. If you watched our McDonald's video you'll see that their owners net profit is seemingly not that impressive . There are new emerging food franchises that offer AUV's of over a million dollars with a quarter of the investment and 20% margins - call Franchise City for details.
Everyone thinks they are making a great franchise decision, most are not. We help buyers make informed decisions you can learn more about us here. don't forget to like and subscribe and hit the bell for updates. Thanks for watching.

https://www.bk.com/ https://en.wikipedia.org/wiki/Burger_King
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