What do some of us smart Indians do? Taking advantage of the newest opportunities in the market has been a new way to make money for us. Franchising has become the lucrative option for wise investors but how do you make a decision with a lot of questions on your mind? Stop worrying and start reading.
This guide is all about your queries; on public demand burger king franchise, India is going to be weighed on every aspect. Yes, we all have been there, the deal is the make or breaks situation but you gotta understand learning more about the company is the best thing to help you out.
If you have already given a shot at franchising then I bet this information would tell you some hidden aspects. Franchising is not just buying the name of a company and using it. It is much more than that, for a fact the different demand is generated in different areas. The same logo could work differently for me and for you. So you must expect different outcomes in your area. Take a look at the below factors and decide yourself.
Contents
Why does Burger King offer a franchise?
Burger King is a well established and famed company in the whole world. It is too obvious to question why they offer a franchise? Why not start your own outlets? Yes, there is a good reason behind it. The sole aim for a business is earning profit and the franchise options are a great deal for Burger King.
The enormous build-up of goodwill demands a payoff at some point in time. Hence burger king is utilizing its goodwill to get good profits through franchising. But what do I get out of it? In simple terms, this is a win-win situation for all. Every new franchise enables you to use their already maintained goodwill.
You can easily set up a Burger King outlet and there are various benefits that you get after purchasing the franchise. Here is the quick look.
- Monopoly: Burger king allows you to have a monopoly in the market. You will not find any other outlet with the name of Burger King in the same area. It is in itself a high amount of profits.
- Survival: you get a long period of survival for the business. It means the franchise will not be taken for a few years.
- Support team: starting from the setup to the running requirements of the outlet, you get support at every stage. This includes supply chain management, design, and construction manager.
- Full Franchising: The less known fact about burger king is its 20% ownership holder is McDonald’s. Who is also the biggest competitor but you have full right for franchising in your outlet? It means the whole outlet is under a franchised area.
What are the factors that affect franchising decisions with Burger King?
Franchising is an irreversible decision so weighing down every factor of the upcoming time is the best option. You may have looked out the common areas such as profits, returns, risk measures, variety of products, and much more but there is much more to this story.
The whole new perspective can be developed by learning some facts about Burger King. I welcome you to these journeys and choose what is better for you. Here are some of the biggest factors that help a Burger King Franchise India decision.
- Startup Cost: The major decision is based on the cost of a franchise that you can get. Well, let me clear you one thing that startup cost has a lot of other factors hidden. I am sure you want to know more so read below in detail.
- Financial Roller Coaster: The history of Burger King itself shows different types of financial problems but with each problem, the company has proved its stability. Well, which company does not have those problems. Read the history of Burger King to know more.
- Profit margins: well the current standing of Burger King is exceptional but due to different situations in the past, the profit margins are the direct figures that get impacted. So be ready to take risks and don’t get fully dependent on the company. Also, you must know that this risk remains with every business opportunity.
How much Investment is required for Burger King franchise India locations?
Let us learn about the major focus of franchising, investment. You need to understand that investment will not be a single figure, there will be multiple figures depending upon your location. Yes, the location of the outlet is chosen by the franchisee (who purchases a franchise). This location is classified into different categories.
Before learning about the different categories; you are required to choose an appropriate location for franchising. Burger King gives you special treatment here, you can get full support to choose the best location or bring in your own hotspot area. The location will be then analyzed by Burger King.
Traditional Areas
A secluded building of your choice that contains a full-size burger king restaurant. These kinds of areas can be available with other buildings such as a mall or a separate one. Also, it requires a traditional burger king menu to be served.
Non Traditional Areas
When you operate in an area that also holds other businesses such as gas stations, convenience stores, retail, foodservice, and other franchisees. It is a great option to be in this kind of area as it can attract more customers.
Institutional Areas
The locations that are owned by the government are genres called institutional destinations. These include factories, corporate campuses, turnpikes, limited-access toll roads, theme parks, zoos, medical facilities, airports, trains, bus stations, sports facilities, and educational institutions.
The Initial Investment
Here comes the amount of investment that is generally expected by Burger king which lies in between 2.5 to 3 crores. A point to note here that only those entrepreneurs are welcome who have any of the above location requirements fulfilled.
Additional Fees
Only the chosen ones for buying a franchisee at Burger King are offered an opportunity to set up an outlet. So make sure that you don’t miss out on royalty fees that are sometimes ignored which is about 4.5% to 5%. This amount should be included in the investment amount.
Overall Amount
While calculating the initial investment and royalty charges, it is not the end of the investment. There are hidden charges that will be laid after you apply for an official agreement. These charges when added gives a total amount anywhere in between 3 crores to 22 crores
Why not understand some of the major requirements of getting a burger king franchise India? It helps on the further way to proceed for applying as the best candidate who can set up an outlet in India.
Are you aware of Burger King franchise India requirements?
Don’t worry there are no high intended demands from burger king. As an established seller in the world burger king has earned this much to maintain its brand image. But I must say that these requirements are some that keep you ahead in the food industry.
- The very first and obvious requirement that any company demands is representing authentic and authorized products. No extra services to be given without permission from the main office in writing. Yes, you need to get every aspect done on papers.
- There may come a time when specific outlets are given permission (in writing) to extend their services so you better understand the terms prior to taking your own decisions. The specifications should be used to the utmost detail of each service or product that is provided differently from regular business.
- There could be no other business except for what is mentioned in the agreement. The Burger King Restaurant is the only major business that can be held in the operational area.
- The hours of opening the business will be specified in the agreement. Any change in the routine should be communicated to the Burger King in writing and if given authority only in writing then it can be extended. The normal hours are mainly business hours.
- The franchise agreement specifies the involvement of the owner in the business. It means how much work and which kind of work is carried by the owner is solely dependent on the franchise agreement.
- There are strict regulations for delivery services and these should be learned in advance. Some of the burger king franchises may allow or may not allow for delivery services. Also, there are methods, standards, and rules related to delivery services that can not be neglected.
What to know before applying for a Burger King franchise India?
Yes, yes I know we talked about actually everything in detail that is required to be known about burger king. But do you know that there are some important points that change the franchise agreement? Don’t get surprised because every deal in the business world has one different side that only a few people know of.
I would give you a few points that will definitely help you out to learn those sides of the Burger King franchise agreement.
- The Development Fee: this is the fees that may or may not be charged depending on the status of your location. But the good news is the development fee is a negotiable matter. This is one of those gaps where you can use some lateral thinking and work out a better plan.
- Rent: In some cases, burger king leases its property to start the outlet so you have a chance at getting good rent options. You may also choose different locations so that the rent can be in your budget. Don’t think of rent as a small amount because it will be a payment for every month. So work it out well.
- Sales Impact Contribution: again this amount varies for every individual who dreams of buying a franchise at Burger King. Don’t get too mixed up in the process and burn out the chances of getting a good deal.
I heard of these charges and sure wanted them to work out for you. If you are serious about buying a franchise then better know about the charges in detail and start planning to crack a great deal.
Time to take action: How to apply for Burger King franchise India?
So here you are, applying for a burger king franchise India. Do you wonder what can be the biggest decision to make while applying? Clearly, it is choosing whether to operate an entirely new franchise or Recreate an existing franchise. The decision holds on you but makes it wisely.
Knowing that you are still doubting about what decision to make. I am going to make the process easy and let you know that we have a different process to apply for a new or existing franchise. Just directly scroll down on any one of them and learn before you know it.
Apply for New Franchise
- Ascertain your position in terms of investment. Burger King will demand that the position of each individual applying to buy a franchisee should have a bet worth $1.5 million or more. Also, liquid assets should value $500000.
- It is the most crucial time when you approach for funding. I hope you have already structured a plan to get funding from various sources. You must approach all of them and get the funding officially approved on papers.
- Prepare the document for funding and get a qualified loan so that Burger King can evaluate the investment amount.
- Apply for the Burger King franchise India through the website and get in touch with the Indian authorities that will majorly look in the matter.
- You can directly contact the Indian representative of Burger King through the contact details available on the website.
- Go through the franchise disclosure which will be given through burger king. It will mention further steps.
- Now it is that time where you select the best location or propose the location that already you have chosen for a burger king outlet. Discuss the details of the location with the Burger King representative.
- Select the franchise agreement that I have mentioned above which will specify your ownership rights. Get the frame agreement fone from Burger King representative’s side.
- Now you should get your attorney to understand the terms of the agreement and learn every aspect of the agreement that may affect the future terms.
- Now get the funding from your lender and deposit the amount. The signing is the immediate process that will be done before depositing the investment amount.
Apply for Existing Franchise
- As you are already using an existing franchise then there is no need to discuss the location and its features. You can directly complete the basic requirements for funds which is a net worth of $1.5 million and liquid assets of $500000.
- Approach the franchise owner and discuss the aspects of selling. You can select the franchise from multiple options through hiring a franchise broker.
- Examine the present conditions of the franchise, it may require to be renovated or reinstallation of equipment. Get professional help. Also, go through the financial records of existing franchises with the help of an accountant.
- Approach to Burger King representative and propose your final plan. There could be any changes done by the representative. Follow them and move on towards acquiring funds.
- Get the funds and deposit through an escrow in the deposit office of Burger King. You will be required to submit the escrow details to your lender.
- Then close the escrow by depositing the funds. Sign the agreement and get it checked through an attorney before signing.
Step into the shoes of Burger King: How they want owners to run a Burger King Outlet?
There is a specific requirement by the franchisee taker to attend the training program introduced by Burger King. This program is known as the Franchisors Training Programme.
- You may be well aware of the role played in the organization like Burger King but this kind of opportunity helps to build a great business. The learning program ensures that you understand the rules and regulations of Burger King.
- The Training Programme is scheduled on the specified date and location by Burger King. You must be available for the Training Programme. The program fee is charged for the specific courses.
- You can get additional training if required specifically for the directors and promoters of the franchisee. Various workshops and seminars are held at regular intervals that encourage your confidence and learning.
When to renew the franchising agreement? Most importantly; How to renew the agreement?
While applying for a burger king franchise India, the investment amount is a high bunch. And a clever entrepreneur would know that the number of years this agreement lasts is the period of payback for the invested amount. Moreover, this period ends one day and you need to renew it.
As the renewal decision solely depends upon your choice but in most cases, these are overlooked. You may not want to ignore the peak points of your business. While the renewal period can take a while and the business can be disrupted which is surely a big No. so get to the point and start learning about renewal procedure before you require it.
- The franchising opportunity once given will last for 20 years. Also if there is any other clause for the period of the franchise then you will learn it during the verbal agreement and written agreements. After those first 20 years, you will require renewal.
- Don’t get your hopes too high as there are no renewal rights for any Burger King franchise. Oh No, that means it’s just an opportunity for a few years. Of Course not, just get ready to have a new franchise agreement in place of the old one. And you are good to go with the same outlet.
Small talk about money: What are the profits? What is the risk involved? And finally, what is the ROI?
Let’s cut to the chase because we all know that burger king is a highly potential competitor in the market. So it is relevant that the profits will touch the goodwill. While acquiring a franchise in a skilled company like Burger King, you must expect profits. I for one would give you basic reasons behind the high profits of Burger King.
- First of all, the prices of the products and services provided at Burger King are far better than their competitors. But not very low and that contributes its part to the high profits.
- As you will be the one who maintains these same costs in your area so it is reasonable to expect the profit margins.
- Secondly, the quality of food is maintained at every level. The specific methods are introduced as the training program mentioned proves that employees have enough skills to maintain this kind of quality. Well, quality payback in the form of money.
- Third, the equipment used in any outlet of burger king is specifically mentioned by the Burger King itself. So you will automatically maintain the efficiency of supply in demand.
- Fourth, the demand for burger king with its authentic products has reached a level that has given entirely increasing profits year by year.
Well, we have gotten to the point where you must know that on an average every Burger King franchise India has sales of 3 crores per year. And you must note that this figure is not an approximation but disclosed by Burger King in Economic Times.
The risk potential of the food industry stands low compared to any other industry, especially in India. But there are some factors that affect the risk involved here is a quick look.
- Operational area: the metro cities of India will find abundant growth in the food chains. So no need to worry there but a small city can find difficulty in absorbing the high cost. So take market research.
- Competition: The long list of competitors will be provided to you at the last but don’t worry about the competitors. You already have a demand which is already not supplied enough so fulfilling this demand makes your place in the market.
- Lifestyle choices: the high propensity of consumers shifting towards healthier choices has given a threat to the food industry. But to make sure the earning capacity is on track, the innovative products are on the way that will match the needs of consumers.
Simply to look at the return on investment then I can say bearing the risk involved, each burger king franchise is able to produce profits. But reaching the returns on investment (ROI) is surely done only by those who took proper actions in their operation area. Here is a brief where you can learn, do read.
A little binge at Burger King history; get your gears on!
Let’s go on a short drive and look out from your window for the great history of Burger King. From the idea to the different acquisitions each time it has a different story with the same result; growth. The only reason being a quick grasp in the market and taking action when required.
I want you to remember the big yellow M known as McDonald’s, why? Burger King is an inspired business by Mcdonalds with a better service of course. When Matthew Burns and Keith Kramer got inspired by McDonald’s and opened their own food outlet. Here is a catch, the outlet was not Burger King but it was Insta-Burger King. Does the name matter? Yes, it holds its own mystery.
The duo purchased an install broiler to broil the burgers. Guess what? This was a hit. How? Eat them and you will know it. The special whopper burgers are waiting for you at Burger King. So the story is yet not completed. After the twist and turns, James McLamore and David Edgerton purchased the Inst-Burger king (who are by the way the founder of whooper too). Now, this acquisition made Inst-Burger King into Burger king.
Now after various acquisitions, the company is under Restaurant Brands International which is the parent company of Burger King, owned by Tim Hortons, and Popeyes.
How far Burger King franchise India has reached?
You must note that India has seen the fastest growth for Burger King. But that is not it, the ongoing expansion plans of Burger King have given me a clue; yes the demand is still not fulfilled. The franchisees will see the growth in the number. What can be better than this? It is just good news for us.
It came as a surprise to me that Burger King is available in 100 countries all over the world so yes it is a global love. Burger love started with hundreds of outlets in the United States and reached 14000 stores all over the world. I won’t say that it is all about burgers because there is much more that I order at Burger King.
Okay, you get high profits at Burger King but this kind of reach in 100 countries makes one big statement. You can have the opportunity to expand almost anywhere in the world without any goodwill; just applying for a franchise in that country. Also, the large menu is nice to show off that includes salads, chicken, burgers (of course), desserts, beverages, and veggies.
Well, Burger King has a never-ending detailed history but I would also want you to take a look at those situations that appear after buying a Burger King franchise in India.
Let’s give a shot at the aftermath
What are the underlying trends in the food industry?
There is something in trends that attract you and me every day. I have always loved to pull off the ongoing trends and the food industry is coming up with their own trends. So are those trends helpful for franchising? Is burger king playing its role? Do you really need those trends? Here is what you want to know.
- Specialized products: getting something made only for me is a trend that has lasted since the production of mankind. Being at burger king customized burgers are the one thing that may be time taking but at last fulfilled. So I would give this trend a heads up for burger king.
- Old is gold: yeah, I get stuck always watching those old things. I mean how can I let go of those old memories? Burger King is the 58 years old food outlet that has given the best time to some of us. So yeah! This one is also a heads up.
- Healthy is a trend: yeah well it does hit the food outlets like burger king but the Sunday cheat days; you can’t forget them. And also the healthy options at Burger King have more demand now. This trend is ok for burger king.
- Organizing is a new need: we millennials don’t have time for others’ chaos, so be organized. This trend is totally worthwhile to be in the market for many centuries and what can be more organized than a franchise? Yeah, the franchise has separate owners, staff, equipment, and everything. In short heads up for this trend.
Moreover, each coming trend in the food industry can be taken as an advantage if you really look at it. Well, this statement is not my opinion but a proven example from past owners of Burger King.
Who are the competitors of Burger King?
Are you really looking at your competitors? Frankly speaking, No. Right now these are not your competitors but an alternative option for franchising. Yes, you heard it right. You are weighing each aspect so if not satisfied then why not move to these alternatives. I guarantee you will have new factors to measure.
Let us know about your competitors and alternatives;
KFC
Yes, obviously the satisfying chicken and fries; can’t forget that. So it is on the top of the list of competitors of Burger King. Also, the world-known image should be given some points too. But yeah! It is the second-best competitor of Burger King. Certainly not the second alternative for franchising- it is the first option for franchising after burger king.
McDonald
Yeah! You already wondered who is the first competitor of Burger King; McDonald’s. The burgers are of course ice breaking at McDonald’s. But Burger King is not at all behind. It is holding its own share in the market.
Subway
One of the unique burgers that can be found in India is at Subway. It also holds numerous outlets around the world and that has made it a leading giant in the industry. The good thing is it also has franchising options.
Pizza-Hut
One of the cutthroat competitors but certainly getting that position, why? I think it is underrated a lot of times. But Pizza-Hut has maintained a good amount of profits in the recent past. It is an ever-growing chain until now.
Domino’s pizza
Talking about pizza-hut and not mentioning Domino’s pizza; can’t do that. It is a good competitor of burger king but more than that; it is the biggest alternative in the franchising world. You can seriously think about this option.
Starbucks
Starbucks is certainly a competitor of Burger King but rests assured because not in India. You will find more Burger King than Starbucks. Also, it majorly focuses on coffee so I also thought that why to take it even on the list. But don’t forget the huge market share it is holding.
Conclusion
Get on your feet and start working. The new trend of Franchising is not a limited idea. If you are dreaming of a franchise then now is a great time to start. I feel that you may think about where to start. One idea, start thinking about funds and your knowledge.
Here is a tip# Learn more about franchising before you really get into it.
I really wonder have you tried a burger at Burger King? As the power of selling lies when you yourself use the product; so try that burger now. And if you found the above words a bit useful don’t stop at giving your feedback.
