Entry fee, royalties, ad fund
The BKRI (Burger King Restaurants Italy) franchisee benefits from the company’s know-how, the possibility of using the brand, economies of scale with suppliers, in summary of the support and organization of the Burger King “system”.
For this the payments of:
An entry fee of $ 60,000 for the 20-year contract (if the contract has a shorter duration, the entry fee is reduced in a directly proportional way, or $ 3,000 / contract year);
A royalty of 6% on turnover, to be paid monthly;
A contribution, which is paid by each restaurant of the Burger King chain, of 5% of the turnover, for marketing activities at national level (called “Ad Fund”, short for “Advertising Fund”).
Location
Several situations can occur:
The Franchisee operates in a property it owns;
The Franchisee enters into a lease contract with the owners of the property and the relationship is therefore direct between the Franchisee and the property itself
In any case, the choice of location and the franchisee development plan are coordinated by Burger King.
Investment by the Franchisee
There are different types of Burger King restaurants and consequently the investment level changes.
In summary, Burger King restaurants can be divided into 3 categories:
Food court: restaurants in shopping centers;
Online: these are shops that are opened in existing structures, sometimes even with the Drive lane;
Freestanding: autonomous structures, in which Burger King is the only activity present, always with the Drive lane
Despite the caveat that the investment may vary according to the size of the room, the indicative range is:
Food Court: 600 K – 700 K €
Online: 800 K – 1 M €
Freestanding: 900 K – 1.1 M €
The franchisee is required to have an investment capacity of approximately 50% of these amounts in its own means, the remaining part can be obtained from the franchisee through bank loans, other investors or through the rental of part of the equipment (operating leasing).
Training
From affiliation with Burger King to the actual opening of the first store, about 6 – 8 months pass, during which all the tools are provided to the Franchisee and the steps necessary for a successful first opening are highlighted.
The training of restaurant manager teams lasts 2 – 3 months; the training of the basic staff (“crew”) lasts two weeks.
BKRI’s support for the Franchisee is continuous; takes place both before opening, during the training phase, and after the store has been opened, thanks to continuous operational support visits.
Of course, the Franchisee also benefits from all the Marketing activities conducted at national level, organized by the Marketing Department of BKRI, activities to which it contributes with the payment to the Ad Fund.
Who we are looking for
We are looking for Franchisees who want to play a leading role in the ambitious development plan of BKRI in the next few years in Italy, Kosovo and Albania and who aim to develop with us from 3 to 5 points of sale.
It is not necessary to involve the Franchisee in full time in the operations of the restaurant: in this case the Franchisee will have to take care of identifying an operational contact with whom Burger King Restaurants Italia Srl will interface for the most operational and Marketing and points management issues. sale, while interfacing with the Franchisee for issues more related to the contract and development.
D & KO 