Burger King started franchising operations in 1954 based on the successful marketing of the signature Whopper hamburger. Decades later, the fast food empire numbers more than 12,000 burger franchises in the United States and foreign countries. BK entices franchisees with a cafeteria-type menu of operations and store-management training, including financial, constructor and store-decor advisers. Owners also have access to a purchasing network for food and supplies. If you’re interested in BK franchise opportunities, you have the option of corporate restaurants requiring a significant investment in multiple locations or purchasing an existing franchise with a single location.
Collect and organize your financial portfolio information to qualify for a franchise and a bank loan. The Burger King Corporation required potential franchisees to have a minimum of $1.5 million net worth and $500,000 in liquid assets to qualify for an application in 2012.
Research lenders to determine the best fit for your fast food franchise loan. Shop loans specifically for fast food restaurants. Lenders make loans for various types of franchises, but not all lend for restaurant operations.
Submit paperwork and an application to a lender to prequalify for a franchise loan.
Take the online qualifying questionnaire on the Burger King franchise website.
Contact the Burger King corporate representative charged with supervising the state of your prospective franchise. Locate the name of the representative from listings on the BK franchise website.
Evaluate Burger King’s corporate Uniform Franchise Offering Circular and a copy of the franchise disclosure. Federal law requires the disclosure as part of the business offering.
Decide on a building site for your franchise with the Burger King state representative or propose your own location for the restaurant on land you currently own.
Select the contract options for your restaurant and ask the Burger King state representative to write the franchise agreements incorporating these terms. Options include advanced training, special decorative features for your restaurant and types of equipment.
Hire an attorney with a specialty in franchise law to review the Uniform Franchise Offering Circular, franchise agreement and disclosure document, if it is required in your state. The UFOC and disclosure, regulated under the Federal Trade Commission, provide useful financial information about your investment with Burger King, including the number of franchises in the geographic region of your new store and any BK franchise failures.
Review the franchise termination clause and restaurant resale clauses in the franchise agreement and make sure the language matches your verbal conversations with the franchiser.
Meet with your lender and arrange the franchise loan. The lender requires information about the franchise and may also need to evaluate additional financial documents to confirm your economic status since the prequalifying loan interview.
Sign the franchise agreement and paperwork and deposit your cash as required under the franchise agreement.
Develop a personal finance portfolio and meet with bank lenders to prequalify for a franchise business loan. Shop lenders for the best terms on your fast food restaurant loan.
Locate franchises offered for sale by contacting a franchise broker or commercial real estate broker.
Shop for franchises by visiting the fast food restaurants in person. Avoid selecting a franchise by examining paperwork and photographs or videos.
Evaluate the physical condition of the existing fast food franchise locations offered for sale. Restaurants with outdated exteriors and interior decor face increased costs for renovations to meet BK corporate standards. The physical evaluation includes an assessment of the kitchen equipment, landscaping, condition of the parking lots, building roof, lot drainage, and plumbing and electric wiring. Professionals in these fields provide added expertise in determining the quality of the current systems and equipment.
Evaluate the financial condition of the existing Burger King franchise. Hire an accountant to examine the restaurant’s tax statements and business records and hire a marketing research specialist to evaluate the local fast food market surrounding your prospective restaurant. This step might include an external audit of financial records of your selected store after you narrow the offerings to one or two restaurants.
Write an offer with the broker for your selected franchise and provide earnest money to accompany the real estate offer. Your real estate representative places this money into escrow when your offer is accepted.
Have your franchise real estate representative present the offer for the franchise and represent you during any real estate sales contract negotiations.
Open escrow on the Burger King franchise and deposit your down payment with the escrow office.
Meet with the lender and complete the final loan application by submitting the escrow paperwork and submitting any personal financial documents required by the lender. Work with the BK franchise to obtain the financial documents requested by the lender.
Close the escrow on your Burger King franchise by funding the loan, signing the grant deed and depositing any cash required in addition to the loan.