Due to the increasing urbanization, participation of women in the workforce and rising disposable income, the quick-serve restaurant (QSR) market is expected to reach 828 Billion by 2025.
So using this opportunity you can enter the QSR business by taking the franchise of the world’s leading restaurant chain like Burger King.
In this article, we will give a complete guide related to the Burger King franchise, which includes Burger King franchise cost, profit margin, licenses and documents required, space required, how to apply for the dealership, etc.
Why choose Burger King Franchise?
Founded in 1953, Burger King is an American multinational quick-service restaurant chain. It has a headquarters in Florida, USA.
Today the brand is the second-largest burger restaurant chain & the fifth-largest QSR chain in the world. Burger King serves a wide variety of burgers, sandwiches, crispy fries, shakes and ice creams. It has 20,000+ outlets in 100+ countries.
Burger King entered India in 2014, with its first franchise outlet in South Delhi. Today it has 300+ franchise & master franchise-owned outlets all over India.
In India, a private investment firm called Everstone Group has a master franchise agreement with the Burger King brand. Everstone Group will provide the sub-franchise of the brand apart from running its own outlets.
Everstone Group is a well-established firm with vast experience in the Quick service restaurant business. It also has the master franchise of Subway in India.
Licenses and Registrations required
These are the licenses and documents required to start a Burger King franchise in India.
- Business Registration – sole proprietorship/LLP/Private Limited
- FSSAI Licence
- Trade Licence – from the local municipality
- Shop and Establishment Registration
- GST Registration
- NOC from the local fire department
- Eat House License – from the city police commissioner
- Certificate Of Environmental Clearance from MOEF
- Signage license from Municipality
If you lack capital, then you can approach banks like SIDBI for a business loan.
Space required to start the franchise
To start a Burger King outlet in India, you need a commercial space of around 2,000 to 3,000 square feet. Make sure that the outlet is in a prominent location that matches the Burger King guidelines.
If you do not own a commercial place, you can lease the outlet. Note that, all leases are corporately held and you will receive a sublease.
For the location, Burger King has 3 categories,
i). Institutional locations like metro stations, airports, sports clubs etc.
ii). Commercial areas like shopping mall food courts.
iii). Non-conventional areas like petrol bunks, high footfall areas, etc.
Burger King franchise Cost
The total investment required to start a Burger King franchise in India is around 2 crores to 3 crores with 2000 to 3,000 square feet of commercial space that matches Burger King guidelines.
The majority of the Burger King outlets in India are run by the Burger king master franchise Everstone Group. The master franchise will provide the sub-franchise of the brand.
Since most of the outlets are run by the master franchise, the chances of getting a sub-franchise are very rare.
The eligibility for the sub-franchise will be decided by your current liquid assets, total net worth, your desired location, your experience in the QSR business etc.
The investment amount mentioned above is for education purposes only, the exact investment sum may vary. Here is the approximate breakdown of the above-said amount.
| Franchise Fee | 15,00,000 |
| Training Charges | 7,00,000 |
| Real Property | 10,00,000 |
| Professional Fee | 4,00,000 |
| Zoning Expenses | 2,00,000 |
| Construction & Improvements | 40,00,000 |
| Landscaping | 20,00,000 |
| Machine & Equipments | 12,00,000 |
| Decoration | 10,00,000 |
| Signage Boards | 8,00,000 |
| Pre Opening Wages | 6,00,000 |
| Inventory to start | 4,00,000 |
| Inventory & cash control system | 12,00,000 |
| Business Insurance | 9,00,000 |
| Working Capital | 50,00,000 |
| Licenses, Lease deposits etc | 3,00,000 |
| Interior Playground | 9,00,000 |
The monthly expenses include employee salary, raw materials, utility bills, etc.
Related:
Profit margin in Burger King franchise
Burger King charges a royalty fee & advertising fee of a total of 9% on the gross sales. So deducting all the expenses and the royalty, you can expect a profit margin of up to 10% on your annual sales.
How to get a Burger King franchise?
In India, Everstone Group has a Master franchise agreement with the Burger King brand. So to open a new Burger King franchise, Everstone Group will provide the sub-franchise of the brand.
For the new franchise, you can contact Burger King by filling out their franchise application form available on their official website.
After filling out the form, if approved, the team will contact you for further steps.
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FAQ about Dealership
How much investment is required for the Burger King franchise?
You need an investment of around 2 to 3 crores with a commercial space.
How much shop space is required for the Burger King franchise?
The space required is around 2,000 to 3,000 square feet.
Profit margin in Burger King franchise?
You can expect a profit margin of up to 10% on the annual sales.
How to contact Burger King for the franchise?
You can contact Burger King for a franchise by filling out the form given in the article.
I hope this article has resolved many of your doubts related to the Burger King franchise. If you have any suggestions feel free to mention them in the comment box below.
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