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Burgerim Franchise ProfileFood Franchises > Fast Food |
What Are the Initial Investment Requirements for a Burgerim Franchise?
To open a Burgerim franchise, you’ll need to prepare for a range of initial investment costs. The franchise fee is set at $70,000, with total startup costs varying from $40,000 to $683,000. It's crucial to have liquid cash available, ranging from $30,000 to $70,000, alongside a net worth of $200,000 to $500,000. This investment covers everything from equipment and inventory to initial marketing expenses, which can help you establish your location effectively from the start.
What Are the Ongoing Fees Associated with a Burgerim Franchise?
As a Burgerim franchisee, you will be responsible for ongoing fees that contribute to the brand’s marketing and operational support. This includes a royalty fee of 5% of your gross sales and a marketing fee of 1%. These fees help sustain the franchise’s brand presence and provide you with the necessary tools and resources for success. Understanding these fees is essential for managing your financial expectations as you grow your business.
What Is the Average Revenue Potential for Burgerim Franchise Units?
Burgerim franchises have a promising revenue potential, with average annual revenue per unit at approximately $800,000. The median revenue sits at $500,000, while units can generate anywhere from $70,000 to $1,000,000 annually. This diverse revenue range indicates that your success may depend on various factors, including location, management, and marketing strategies. A well-run franchise can lead to substantial earnings, making Burgerim an appealing option for aspiring franchisees.
What Is the Expected Return on Investment for a Burgerim Franchise?
Investing in a Burgerim franchise can yield a quick return, with a breakeven time estimated at just 12 months. This rapid payback period is supported by the average EBITDA of $96,000, which represents 12% of revenue. The financial structure, including operating expenses and gross profit margins, suggests that with effective management, franchisees have the potential to achieve profitability in a relatively short timeframe, making it an attractive opportunity for new investors.
Burgerim Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Burgerim Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2016 | 2017 | 2018 |
|---|---|---|---|
| Total Units | 0 | 22 | 108 |
| Net Change YoY | 22 | 86 | |
| Franchised Units | 0 | 22 | 86 |
| Net Change YoY | 22 | 64 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Burgerim franchise offers a range of investment options, with an initial investment ranging from $40,000 to $683,000. The franchise fee is set at $70,000, while franchisees can expect a royalty fee of 5% on gross sales and a marketing contribution of 1%. New franchisees must have a cash requirement between $30,000 and $70,000, along with a net worth of $200,000 to $500,000, making it accessible yet substantial for aspiring entrepreneurs.
Revenue Potential
Franchisees can anticipate a strong revenue potential, with average annual revenue per unit reported at $180,000 and a median of $500,000. The revenue range is significant, with the lowest annual revenue at $70,000 and the highest reaching $1,000,000. This variability allows for diverse market opportunities, catering to different business strategies and locations.
Operational Performance
The average financial performance indicates a gross profit margin of 60%, with average annual revenue of $800,000. After accounting for operating expenses of approximately $384,000, franchisees can expect an EBITDA of $96,000, translating to 12% of revenue. This performance metric showcases the potential for profitability within the Burgerim franchise model.
Franchise Growth
Burgerim has demonstrated rapid growth since its inception, with 22 franchised units established in 2017 and a remarkable increase to 86 units by 2018. This growth trajectory reflects the brand’s expanding market presence and the increasing interest among franchisees, indicating a favorable environment for new investors.
Breakeven and Payback
Franchisees can expect a breakeven period of just 12 months, with an investment payback timeframe also averaging 12 months. This quick return on investment is appealing for entrepreneurs looking to enter the franchise market, as it minimizes financial risk and accelerates profitability.
Support and Training
Burgerim provides comprehensive support and training for its franchisees, ensuring they are well-equipped to manage operations effectively. This includes assistance with site selection, marketing strategies, and ongoing operational guidance. The franchise's commitment to franchisee success is a key component of its overall business model, fostering a collaborative environment for growth.
Frequently Asked Questions
The initial investment for a Burgerim franchise ranges from $40,000 to $683,000, depending on various factors such as location and size of the unit. This includes the initial franchise fee of $70,000.