Burger King Franchise Cost in India – Requirements, profit margin, etc to apply for Burger King Franchise

What comes to your mind when you say “burger”? Yes, Burger King and McDonald’s is the first restaurant chain that comes to our mind. Did you know? Burger King was initially called Insta-Burger King. This was because Burger King made delicious burgers quickly for corporate customers. Yes, the food items sold by this American-based multinational fast-food restaurant are just jaw-dropping.

It all started back in 1953 when James McLamore and David Edgerton started Insta-Burger King. India is one of the few countries where people order and consume burgers from Burger King numerous times. Burger King first made their entry in 2014 and has opened up more than 1200 outlets in India. Further in this article, we are going to talk all about the Burger King franchise, how to open, procedures, requirements, and many more.

In India, the moniker Burger King is now well-known. The Burger King Franchise, which had modest beginnings in 1953 in Florida, USA, is now the second-largest business in the country. It offers not only mouthwatering burgers but also top-notch help and customer care. This American fast-food restaurant has a sizable customer base throughout the world and has gained a lot of notoriety in the global food market.

Variety of Products- One of the most popular menu items at every Burger King location is the traditional "Whopper" burger. Along with a vast selection of burgers, it also serves everyone's favourite sandwiches, crispy fries, shakes, and ice cream. The chain offers breakfast alternatives as well.

Burger King Franchise Cost

Burger King does a financial background check so make sure your assets are worth at least Rs 2- 2.5 crore. So, the financial part is quite important when opening a Burger King franchise.

Undoubtedly one of the most expensive franchises to own is Burger King. You already know that acquiring this franchise can be both expensive and lucrative. However, rest assured that you will get maximum support from the Burger King franchisor. Because this food chain has a brand value, you are less likely to incur losses.

Initial Franchise cost

The initial franchise fee for opening a Burger King franchise is Rs 75 lakhs. Unfortunately, Burger King has not revealed its exact franchise fee. You can expect the said amount above plus GST.

Development Cost

The development cost of a Burger King franchise is quite expensive. You can expect a development cost of Rs 18 lakhs to Rs 7 crore. This includes all the equipment, machinery, furniture, interior design, and many more.

Ongoing Royalties

The ongoing royalty fee of the Burger King franchise is 4.5% of the monthly gross sales. This means, Burger King does not charge a royalty fee at once instead, they deduct them from your monthly sales. This is a good technique to keep the franchisee in the business for a long time.

Advertising Fee

The advertising is also taken by the franchises. There is no freedom offered to franchises when it comes to advertising products. Burger King charges 4% of the monthly gross sales from all franchises as an advertising fee.

Ongoing Fees For Burger King Franchise and Other Charges

You can begin operating your firm once you have calculated the overall cost of opening a Burger King franchise in India. But you need to be mindful of some recurring costs, such as:

• Royalty: As royalties, the franchisee is required to give the franchisor 4.5 per cent of monthly gross sales.
• Advertising Cost: To let people in a specific area know about their Burger King restaurant or outlet, the franchisee must spend around 4% of the total gross sales on advertising.
• Building Improvement and Maintenance: This is a purely optional outlay. You are free to personally decide not to incur this expense. But because we are discussing the price of a Burger King franchise in India, it is worthwhile to list. You must spend between $500 and $700 on building upkeep and renovations (although the cost may slightly vary depending on the location).
• Tax: You might avoid paying taxes if you create a small franchise. However, you must pay taxes to the government for a fantastic franchise like Burger King. The tax rate varies depending on the location. An average tax payment from a Burger King franchisee to the Indian government is 18%.
• Training: You must hire new employees when you create a Burger King restaurant. There are high-quality standards that every owner, wherever they may be in the world, must adhere to because this franchise is a major brand in and of itself. The business provides staff employees with top-notch training to ensure that quality standards are met. The training course is about $2500 in price.

Eligibility criteria & requirements for Burger King Franchise

1. Have minimum capitalization: You must have a net worth of more than 2.25 crores to open a Burger King franchise. It is important to realise that starting a popular restaurant franchise takes a large financial commitment. Costs of real estate and construction must be taken into account, as well as expenses for uniforms, insurance, signs, permits, and licensing.

2. Examine the availability of the market: Before starting the franchising application, you should check the market availability for Burger King Franchises to determine if there are any available markets in the region you have chosen.

3. Examine your past talents and expertise: Before applying for a Burger King franchise, you should carefully evaluate your prior business experience.

4. Submit your application carefully: If your financial and background checks are successful, the Burger King Franchise team will assess your application and approve you for a franchise. Only those who fully satisfy the requirements of the franchisees will be authorized.

Once your online application has been approved, you will receive an email confirmation receipt along with the franchise owner's contact details. Once you've been given the all-clear, you may begin setting up your Burger King franchise.

Requirements Before Opening a Burger King Franchise

The franchisee is required to take part in a corporate training program to get knowledgeable about the fast-food business and industry. They will be able to learn more about running a burger joint thanks to this.

Now, if you are planning to open up any franchise there are certain requirements that the company expects. Being a franchisee you must fulfill all of those criteria so that you do not face any hassle while opening a franchise. In the same way, opening a Burger King franchise has its requirements and they are the following :-

Business Experience

People thinking to open a Burger King franchise normally ask do they require any background experience in the field. Yes, as per the company’s guidelines, a business owner must have at least five years of experience in the food service industry. If not then the business owner can have any year of experience in the concerned field. Additionally, the owner must be financially stable to get a Burger King franchise green light.

Background Check

Yes, a proper background check will be done by the company. Burger King will only send approval once all the financial and other related background checks are completed. Make sure you are financially stable to open a Burger King franchise.

Training and Support

Being a well-reputed fast-food chain you get 24/7 support from the company. Without a doubt, we can say the support is outstanding from Burger King. They will support you from the beginning to the operation day of your franchise.

The hiring of new employees must be done by the franchisee. You must make hiring as per the brand reputation, and make strict parameters while hiring. To meet the quality standards make sure the employees are trained well with proper utensils and machinery. Normally, it will cost you between Rs 1-2 lakhs to train new people.

Agreement

All the agreements will be done by the parent company itself. The length of the initial franchise is generally 20 years for the freestanding restaurant. It could be less for non-traditional locations. Fortunately, there is no right to renewal. Moreover, the agreement is made for 20 years or lesser.

Location

Being a reputed company the location must be quite good. You must have a commercial space of 2000-3000 square feet of land. This land must cover your franchise building, sitting area, parking area, a small garden, and space for a truck to load in and out. Burger King expects its franchisee to invest a good amount when it comes to location or area.

Financial requirements

The Financial requirement is the first thing if you are planning to open a Burger King franchise. Yes, opening a Burger King franchise is not cheap its quite expensive. The total cost to finally open a Burger King franchise will take a minimum of Rs 20 crore.

The maximum investment required to open a Burger King franchise would range between Rs 25-40 crore. Some of the necessary cost included in this investment is given in the table below:-

Insurance fee	Rs 5 lakhs- Rs 1.8 crore
Working capital	Rs 14 Lakhs- Rs 70 lakhs
Franchise fee	Rs 11 lakhs- Rs 40 lakhs
Space, rent, electricity	Rs 67 lakh- Rs 6 crore
2-Story Interior playground	Rs 1- Rs 1.5 crore
Construction and Designing	Rs 18 lakhs- Rs 7 crore
Interior and Architecture	Rs 7 Laks- Rs 33 lakhs
Equipment	Rs 63 Lakhs- Rs 2.5 crore
Decor Package	Rs 65 lakhs
Area expenses	Rs 75 Lakhs- Rs 18 crore
Control desks	Rs 25 Laks- Rs 45 lakhs

Space Requirement for Burger King Franchise

Space is a very significant factor when opening a franchise. Customers are always attracted to amenities, features, and facilities offered to them other than the product sold. To attract customers a beautiful interior filled with facilities must be there.

Restaurant Space

Normally, the space required to open a Burger King restaurant is 1500-2000 square feet. But, this depends on the location you are opening. If the highly demanded market then this is the right requirement if not then that could go down to 1000 square feet. But, you must have a seating capacity of 100 people. It should either be located in a good market area or inside a major shopping mall.

Parking space

Parking is another significant factor in opening a reputable franchise. A proper parking area must be provided so that customers from far can come and enjoy as long as they can. There is no proper parking area requirement but, you must ensure there is enough space to park at least 20 vehicles.

Visibility and Accessibility

Your franchise will only be visible when it is located in a good area. Burger King expects its franchisee to open one within 1km of a major shopping mall. In fact, opening a franchise inside a mall would highly be appreciated by the parent company.

Opening a Burger King franchise in such a location would allow customers to get easy access to other major places. For example, the metro, movie theatres, supermarket stores, and many more. People normally visit such locations to spend their precious time so targeting such areas would be a plus point.

Zoning

Burger King grants the right to operate a Burger King restaurant or franchise at a specific location only. They do not target any other area where they have no authority or power. Interestingly, these areas they target are customer-focused safer, and highly demanded areas.

What is the best outlet for a Burger King franchise?

1. Sites are used for institutional purposes, including bus terminals, airports, train stations, metro stations, sports stadiums, and spaces around government buildings.
2. Commercial locations, such as shopping malls.
3. Non-traditional industries, such as supermarkets and gas stations.
4. Franchisees are also required to use the property just to run Burger King restaurants. Only the hours listed in the franchise agreement may be used by the restaurant.

Burger King Franchise Terms and Duration

Territory Granted: The Burger King restaurant may only be run at the site specified in the Franchise Agreement. No exclusive, protected, or another sort of territory or protected client base is granted or implied by the franchise agreement.

Obligations and Restrictions: The formats of Franchise Agreements used for the two types of ownership reflect the differences in the need for personal involvement in the management of the business. Franchisees are required to use the space exclusively for running a Burger King restaurant and to maintain it open and operating normally for the minimum number of hours and days that the franchisor stipulates in the Franchise Agreement or in another written document.

All and only those goods and services that the franchisor has expressly approved in writing, either in the manual or in another written document, and only in accordance with the franchisor's specifications and standards, must be made available for purchase and sold at the franchisee's restaurant.

Term of Agreement and Renewal: The initial franchise term for a freestanding restaurant is 20 years, though it could be shorter in non-traditional sites or in cases where the owner has only temporary property ownership. No right to renewal exists. If the franchisee complies with the terms of the Franchise Agreement and any other agreements with the franchisor, there is an option to obtain a Successor Franchise Agreement for a period of up to 20 years.

Financial Assistance: If the restaurant's land, building, or both are owned or leased by the franchisor, it may rent or sublease the location to the franchisee. The franchisor may occasionally offer finance for a few different kinds of transactions as well.

Burger King Franchise Profit Margin

There isn't a concrete figure or statistic that demonstrates how profitable a Burger King location is in India. The franchise is expanding quickly and becoming more well-known across the nation. Burger King will be beneficial for a person desiring to buy a Burger King restaurant, according to sales of Rs 375 crore in 2018.

Burger King Franchise benefits

Every company has a USP and advantages, and the same is true here! You should be aware of the advantages and results you will receive if you invest in Burger King.

1. If the product you are selling is valuable, your business will always be successful. In the case of BK, this is completely true; the company's delicious burgers have a dedicated fan base around the world. (First Business Rule-Before You Take, Give.)
2. A customer feels compelled to visit Burger King at least once because of the catchy and effective marketing used in the taglines, jingles, and slogans. The whooper series of hamburgers enjoys widespread popularity in India. "The home of Whooper," "Have it your way," "It takes two hands to handle a Whopper," "Burger King Your Way," and a long list of other well-known catchphrases dance in your head.
3. Burger King has a 66-year history and is still seen as being successful today.
4. They also provide you with simple software that makes it easier to run your organisation using the most recent technological advancements.
5. Burger King is a well-known and successful franchise. Before 2025, they plan to open 700 locations in India, and as of December 3, 2020, 268 franchise locations were active. This suggests that there will be more franchising opportunities for entrepreneurs like you.

Burger King Franchise Contact Details

Burger King India Pvt Ltd.Mittal Commercial, Andheri East, Close Marol Naka, Chimatpada, Mumbai — 400059022 7193 3099

• [email protected]
• Official Website- https://www.bk.com/
• Customer Care- [email protected]
• Official Website For India- https://www.burgerking.in/

Does Burger King provide training to franchise owners?

Franchisees must successfully finish the franchisor's training programme before the restaurant may open. Miami, Florida, or other cities designated by the franchisor, is where the training programme is held. A variety of restaurants that have been approved as training restaurants will host in-restaurant training sessions.

Additionally, the franchisor offers and occasionally compels managers to attend recurring workshops and seminars that involve management training and operational skill updates. As necessary, the franchisor will help with pre-opening and restaurant opening. Additionally, the franchisor will offer continuous operations training courses that the managing owner, managing partner, managing director, or director of operations (as appropriate) may be obliged to attend.

How to apply for Burger King Franchise online?

In order to own a Burger King franchise, a number of actions must be taken. They are as follows:

• Visit Burger King's official website to learn how to open a burger king franchise. 
• A person must first go to the website and fill out an application in order to apply for a Burger King franchise.
• The support staff of the business reviews the potential investor's application.
• If the application is accepted, the company will get in touch with the applicant to proceed.

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