BURGER 21 RESTAURANT FRANCHISE COSTS
Capitalizing on the fast casual restaurant, $21 billion industry, Burger 21 is an innovative concept seeking franchisees who meet the following criteria:
Burger 21 will be developed through both single unit and multi-unit franchise opportunities. The amount of units a franchisee decides to move forward with, is determined through discussions with our Franchise Development team and your (the franchisee's) personal goals. Depending on the real estate site selected, the total cost of investment for one restaurant will be approximately $422,083 - $974,395 and the franchise agreement initial term is 10 years.
The initial franchise fee is $40,000, however:
Franchisees also can expect to pay a 5 percent royalty fee of monthly gross sales. If the franchisee opens ahead of schedule, the royalty fee will be reduced to 2.5 percent for a period of up to 90 days. In addition, franchisees will contribute 1 percent to the National Advertising Fund for revenues up to $1.5 million and 0.5 percent on sales amounts exceeding $1.5 million.
Expenditures | Low | High |
| Initial Franchise Fee | $27,000 | $40,000 |
| Leasehold Improvements | $131,000 | $420,212 |
| Impact Fees | $0 | $32,775 |
| Furniture, Fixtures and Equipment | $111,052 | $249,077 |
| Computer and POS Hardware / Software | $20,713 | $31,238 |
| Computer Software Installation and Training (First Year) | $5,175 | $5,975 |
| Gift Card Processing and Customer Surveys (3 months) | $15 | $300 |
| Signage | $5,725 | $25,073 |
| 3 Month’s Rent | $17,322 | $37,500 |
| Security Deposit | $0 | $12,500 |
| Opening Inventory and Supplies | $22,132 | $28,316 |
| Grand Opening Advertising | $10,000 | $15,000 |
| Travel and Living Expenses During Training | $22,620 | $42,820 |
| Miscellaneous Opening Costs | $22,283 | $37,283 |
| Working Capital / Additional Funds (3 months) | $25,000 | $70,000 |
| Insurance (3 months) | $3,000 | $6,800 |
| Legal and Accounting Expenses | $2,500 | $6,000 |
| Permits and Licenses | $2,500 | $14,295 |
| TOTAL ESTIMATED INITIAL INVESTMENT (SINGLE UNIT FRANCHISE) (EXCLUDING REAL ESTATE PURCHASE COSTS) | $428,247 | $1,085,164 |
| Area Development Fee | $20,000 | $90,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT (AREA DEVELOPMENT PROGRAM) (EXCLUDING REAL ESTATE PURCHASE COSTS) | $448,247 | $1,175,164 |