written by Khatabook | February 9, 2022

What’s the Cost of Opening a Burger King Franchise in India?

Burger King is a name now well-known in India. With its humble beginnings in 1953 in Florida, USA, the Burger King Franchise is now the second-largest chain in the USA. It serves not only delicious burgers but also gives excellent customer service and assistance. This American fast-food chain has a large client base in various regions of the world and has become very popular in the global food market. 

Variety of Products- The classic 'Whopper' burger is one of the most popular items at every Burger King establishment. Apart from a wide variety of burgers, it also offers a wide range of sandwiches, crispy fries, shakes, and ice creams that are well-liked by everybody. Breakfast options are also available at the chain.

Did you know? The original name of Burger King was Insta-Burger King, but later, when two franchises bought it from Miami, it was renamed, Burger King.

How to Open a Burger King Franchise in India?

Burger King wants to grow its business worldwide, and therefore, it's always on the lookout for multi-unit operators with partners. This franchise business is open to anyone with substantial restaurant experience and a commitment to providing a great guest experience.

Burger King has approximately 200 locations in India. It is popular not only in major cities such as Delhi, Mumbai, and Bangalore but also in smaller cities such as Chandigarh, Patiala, and Jaipur. 

Advantages to opening a Burger King franchise

There are numerous advantages to opening a Burger King franchise. If there are any questions or concerns, the franchise owner can receive assistance from the Burger King company.

To open a Burger King franchise in India, you must follow a few steps. It's also important to know how much a Burger King franchise costs in India. But first, you should be aware that when it comes to franchising, the organisation offers three options:

  1. Individual contracts
  2. Entity contract
  3. A contract with the company

Also Read: Smart Franchise business opportunities in India 

Things to Ensure Before Owning a Burger King Franchise

The following things must be ensured before owning a Burger King Franchise-

  1. Have minimum capitalisation

To open a Burger King Franchise, you must have a net worth of more than ₹2.25 crores.

One must understand that opening a popular restaurant franchise requires a significant financial investment.

Construction and real estate costs must be included, as well as the costs of equipment and signage, licenses and permits, uniforms, and insurance.

  1. Examine the availability of the market.

You should verify the market availability for Burger King Franchises before beginning the franchising application to see whether there are any available markets in your selected area.

  1. Examine your past talents and expertise.

You should carefully analyse your previous business experience before pursuing a Burger King Franchise.

  1.  Submit your application carefully.

Your application will be reviewed by the Burger King Franchise team and you will be accepted for a franchise if your financial and background checks are completed. Only those candidates who meet all of the franchisees' requirements will be approved.

You will receive an email confirmation receipt, as well as the contact information for the franchise owner, once your online application has been accepted.

After you've received clearance, you can start the process of establishing your Burger King Franchise.

Application Procedure for Owning a Burger King Franchise

There are a number of steps that need to be followed for owning a Burger King Franchise. These steps are:

  1. To become a Burger King franchisee, go to the company's official website.
  2. To apply for a Burger King franchise, a person must first visit the website and complete an application form.
  3. The company's support team examines the application of the possible investor.
  4. The firm will contact the applicant to continue the application if approved.

Requirements Before Opening a Burger King India Franchise

  • The franchisee must participate in a corporate training program to learn about the fast-food industry and business. This will help them in learning about operating a burger shop.
  • The second condition is regarding the restaurant's location. There are three categories of location where a person can open a store. These are as follows:

1. Institutional places, such as bus stations, airports, train stations, metro stations, sports arenas, and government building areas.

2. Commercial places, such as retail malls.

3. Non-traditional sectors, such as gas stations and grocery stores.

  • Another condition is that a franchisee must use the location solely to operate a Burger King restaurant. The restaurant must operate only in the hours specified in the franchise agreement.

All You Need to Know About the Training Program

  • You must successfully finish the franchisor's training program before operating a Burger King franchise.
  • They will inform you about the training program's timetable and duration. Training will take place in a variety of restaurants that have been designated as training restaurants.
  • Individual owners/operators or managing directors will receive further training to help them execute existing operations and procedures in order to enable growth.
  • Burger King's franchisor also offers managers workshops and seminars on a regular basis, which include management courses and updating operational skills in order to provide better food quality to customers.
  • Burger King's franchisor will assist with pre-opening and restaurant opening. They are always willing to help.

How Much Does a Burger King Franchise Cost In Indian Rupees

The cost of starting a franchise depends on where it is located. However, you will require a significant amount of capital to begin this franchising firm. Burger King is unquestionably one of the most costly businesses to operate. You already know that owning a franchise can be rewarding but also pricey. However, you can be assured that the Burger King franchisee will provide you with the best possible support. You are less likely to lose money because this food chain has a strong brand.

The burger king franchise will cost more than ₹20 crores. It can range from ₹20 to 40 crores depending upon the location. The detailed explanation has been given below using estimated figure:

Different Costs

Amount

Working Capital

₹14,89,510 to ₹67,02,795

Franchise Fee

₹11,17,132.50 to ₹37,23,775

Insurance Fee

₹5,95,804 to ₹1861887.50

Business License and other legal papers

₹4,46,853 to ₹22,34,265.00

2-Story Interior Playground

₹1,82,46,497.50

Space and Occupancy Charge

₹67,02,795 to ₹6,33,04,175

Billing and Control Desk

₹26,06,642.50 to ₹44,68,530

Development and Construction

₹18,61,887.50 to ₹7,07,51,725

Interior Design and Architecture

₹7,44,755 to ₹33,51,397.50

Area/Zone expenses

₹74,475.50 to ₹18,61,887.50

Equipment

₹63,00,627.30 to ₹2,19,40,482.30

Pre- opening wages

₹20,85,314.00 to ₹45,43,005.50

Decor Package

₹65,53,844

The cost will also include other miscellaneous costs such as operating system, employee salary, etc.

Ongoing Expenses

After starting the business, certain ongoing expenses are involved as well when you run the business-

Advertisement Cost- 

There would be approximate spending of 4% of Total Gross Sales on Advertising of the Burger King Franchise Store for making people know about the existence of the Burger King Store.

Royalty - 

The royalty payable is approximately 4.5% of the monthly gross sales.

Training - 

When you open a new Burger King franchise, you must hire new employees since Burger King is a well-known brand with strict quality standards that your employees must adhere to. For meeting the quality standards, quality training is offered to the staff members. It usually costs around ₹1.86 Lakhs. The training program is held in the head office of Burger King Franchise in India, situated in Mumbai.

Tax - 

You may not have to pay taxes if you open a small franchise. However, you must pay taxes to the government if you own a great franchise like Burger King. The tax rate varies depending on where you live, and a Burger King franchisee pays an average of 18 percent tax to the Indian government.

Building Improvement and Maintenance - 

This is a purely optional cost. You have the option of not incurring this cost. But, because we're talking about Burger King franchise costs in India, it's worth mentioning. You should budget between ₹35000 to ₹55000 approx for building improvements and maintenance (although the cost may slightly vary depending on the location).

How much money can you make with a Burger King franchise in India?

Burger King locations sell products between ₹20,000 and ₹30,000 per day on average. Taking 30 days in a month, if we estimate sales of ₹30,000 per day, then a monthly turnover of roughly ₹6,00,000 will be incurred. Thus, it can be estimated that you can make an estimated profit of ₹4-5 lakh every month after considering the costs.

Also Read: How To Set up a KFC Franchise In India

Conclusion

Owning a Burger King franchise can be very profitable. However, you have to meet the basic requirements which are mentioned above. Along with this, it is important to have the appropriate knowledge about the Burger King Franchise Cost as well as the steps to apply for getting a burger king franchise. We hope the article gives you relevant information about the Burger King Franchise in India as well as the Burger King Franchise Cost in India. 

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What are the basic requirements to be met?

Ans:

The basic requirements to be met include a corporate training program, and the second is the location where the franchise could be started.

Q: What are some of the ongoing expenses that are part of the cost of the Burger King Franchisee?

Ans:

Some of the ongoing expenses include Royalty, Tax, Building Improvement and maintenance, advertisement cost, tax, etc.

Q: What is the approximate burger king franchise cost in India?

Ans:

The approximate burger king franchise cost in India is over 20 crores.

Q: What are the different products the Burger King Franchise offers?

Ans:

Apart from a wide variety of burgers, it also offers a wide range of sandwiches, crispy fries, shakes, and ice creams that are well-liked by everybody. Breakfast options are also available at the chain.

Q: When was the Burger King Franchise established?

Ans:

The Burger King Franchise was established in 1953 in Florida, USA.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.