How to Open a Burger Franchise

Are you looking to start your own burger franchise? If so, this guide will provide information, tips and the steps you need to take to get started on your path to a successful business as a hamburger restaurant franchisee.

Fast food restaurants and hamburger locations are popular destinations for lunch, dinner, or a quick bite on the go. With busy lifestyles, many families and individuals turn to quick meal options, which creates a good opportunity for entrepreneur minded individuals who want to own their own business. Burgers are a perfect match for the quick food requirements of many consumers. They are a popular entree for children and adults and they can be cooked to order quickly.

Within the burger industry, there are many franchise opportunities through well known brands such as McDonald's, Carl's Jr., Hardee's, Krystal and Sonic as well as up and coming brands such as Back yard Burgers, Five Guys Burgers & Fries, A& W Restaurants and Boardwalk Fresh Burgers & Fries. The more established brands typically have higher franchising fees and may have limited locations available due to the high number of locations that are already established. Lesser known brands may have lower fees, but also have less name recognition.

Your first step towards owing a hamburger franchise is to find one that matches your budget, location and business objectives. You may prefer a big name company that is a reliable franchise option that does not require much marketing, or you may prefer a franchise with a smaller footprint where you can grow with the company, but requires extensive marketing and ongoing support. To find out what types of options are available, consider starting with the Entrepreneur magazine ratings that provides a method of analyzing franchise opportunities. The list is divided into sections on their website so you can view only burger franchise options. Another reliable list of franchises is available on The Wall Street Journal online.http://online.wsj.com/public/page/news-small-business-franchising.html Each location has general franchise information as well as additional information on specific franchises. These references should help you narrow down your list of potential franchise options for further research.

After creating a list of potential burger franchises, it is time to investigate each option in more detail. The best way to obtain authoritative information on a franchise, is directly from the company. Typically, you can find or request information through a link on the company's primary website. Some franchises will require you to request information, while others will provide detailed information directly on their website. Most franchises also have dedicated franchise sales personnel that are available to answer any questions you may have.

In addition to information provided by the company, it is a good idea to conduct your own independent investigation. Visit several franchises and see how the business is run and get a feel for customer reactions. Check the credit worthiness of the company through obtaining a report by Dun & Bradstreet or similar financial reporting company.http://www.dnb.com/us/ You should also check the Better Business Bureau for customer complaint records and other information that could indicate problems with the franchise offer. Whenever possible, try to talk to franchise owners to find out their personal experience with the franchise business model and support they have received from the parent company.

Once you have selected the burger franchise that you would like to open, it is time to meet the requirements set forth by the franchisor to qualify for your own location. You can find a list of requirements in documentation from the franchise, but often the requirements include a substantial up front franchise free, training, business experience, solid credit score, and available liquidity minimums. Some of these requirements may require finding financing or investors. For larger franchises, it is not uncommon for a group of investors to purchase a franchise, while smaller franchises may allow a single investors to obtain sufficient financing. Look into franchisor financing options, especially for equipment and real estate expenses. For some expenses, you may need to obtain a loan guarantee though the Small Business Administration in order to qualify for a bank loan.

Beyond financial obligations, you will also need to pass any training, citizenship requirements or other requirements as specified by the franchisor. For some opportunities, you may need to move to an area where a franchise territory is available if all location near you have already been established. Another option is to buy an existing franchise. Franchisees may need to sell for a variety of reasons and it can be a good opportunity to step in to an under performing franchise and bring it up to profitability or maintain an exiting successful location.

Once you have signed the franchise agreement, your hardest task is ahead. You must find a location, build or refurbish a building and equip it with cooking equipment and furniture. Most burger franchises require a specific look and style to maintain a consistent feel in all their locations. Often, you are required to outfit your restaurant with furnishings from franchise approved vendors.

Before your location is ready, start looking for high quality management staff. No matter how dedicated you plan to be in the day to day operations of your business, you will need management to cover hours that you do not work and to help manage your staff. Since some of your time will be devoted to bookkeeping, finance and ordering supplies and food, you should consider having at least an assistant manager on duty whenever the restaurant is open. For many burger chains, your key management personnel will need to complete training, which could be at a training facility or in your new facility.

After your building is set and your staff is hired and trained, celebrate your grand opening. Consider special promotions and other marketing activities to help quickly establish your restaurant presence with consumers. The quicker you bring in new clients and wow them with your service and burgers, the sooner you will break even and start making a profit. Once you make more than your expenditures, you can say you have successfully opened a burger franchise.

The content in this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.