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BGR THE BURGER JOINT FAQ'S -
WHAT YOU NEED TO KNOW ABOUT US

DO YOU ALLOW OPERATORS OF OTHER FRANCHISE SYSTEMS TO BECOME FRANCHISE OWNERS IN BGR THE BURGER JOINT?
On a case by case basis, we will consider uniquely qualified persons who operate one or more franchise businesses to be considered for BGR Franchises. BGR provides an operating system that can be implemented by customer focused and management savvy operators.

DO I NEED TO HAVE PRIOR RESTAURANT EXPERIENCE TO PURCHASE A FRANCHISE?
Restaurant experience is preferred, but we will consider prospects who posses strong leadership and management skills and have a history of successfully operating in a service oriented business.

HOW MUCH ARE YOUR FRANCHISE FEES & WHEN DO I PAY THEM?
$40,000 (for the first unit purchased) is your Franchise Fee - pays for the awarding of a BGR Franchise. For each additional Franchise purchased, the Franchise Fee is $37,500. $20,000 is paid to BGR when the Franchise Agreement is executed. The balance of $20,000 (1st franchise) or $17,500 (all subsequent franchises) is payable when you execute your Lease Agreement for the site where your restaurant will be operated.

WHAT WILL IT COST ME TO PURCHASE A FRANCHISE AND OPEN MY RESTAURANT?
A summary of all costs related to build and open each BGR The Burger Joint Restaurant are provided in our Sales Brochures and in the BGR Franchise Opportunities section (see My Investment) of our website - "Want to Own One" (TAB located on the left side menu bar). Total costs to open a BGR The Burger Joint Restaurant range from $199,500 to $409,500.

WHAT ARE THE ADDITIONAL COSTS IF I PURCHASE A MULTI-UNIT PROGRAM?
There are no additional costs per Franchise location when a Multi-Unit Option Agreement is executed. There is a $10,000 up-front fee charged for each franchise purchased, which is later applied to the total franchise fee - when final payment is due.

WHAT ARE THE ADDITIONAL COSTS IF I PURCHASE AN EXCLUSIVE TERRITORY?
BGR will award Exclusive Area Franchises to qualified prospects. An Area Franchise is a defined geographical area (defined typically by county or counties) whereby four (4) or more BGR restaurants may be opened according to a mutually agreed upon build-out schedule. The cost to purchase an exclusive Area Franchise is based upon the total number of BGR restaurants that we project can be opened in the Area, and is calculated by multiplying $10,000 per the total number of restaurants to be opened. The total amount of the Area Fee is payable upfront when you execute the Area Development Agreement. Unlike the Multi-Unit Option Agreement, the Area Development Fee is NOT applied towards the Franchise Fees payable to BGR.

HOW MUCH WILL I PAY IN ROYALTIES? WHAT OTHER FEES WILL I HAVE?
There is a Royalty Fee of 5.5% of all Revenues (excluding sales taxes) generated by you as a BGR Restaurant operator. There is a National Advertising Fund Fee of 1% of Revenues payable to BGR. The 1% local marketing fund fee is payable to your Regional Advertising Fund or, should a Regional Advertising Co-Op not yet be formed in your market, the 1% must be spent locally on advertising and promoting your BGR restaurant.

HOW LONG WILL IT TAKE TO GET MY RESTAURANT OPEN?
The development schedule for each BGR The Burger Joint will be impacted by local zoning, permitting and other regulatory requirements; as well as lease and contract negotiations with Landlords and lenders. In general, we anticipate that it will take 6 to 9 months to locate your site, construct your facility and open for business.

HOW DO I FIND MY SITE AND GET A LEASE FOR MY RESTAURANT?
For individual restaurants, we provide you with materials and processes for identifying prospective site locations. Upon submitting a Site Evaluation Package (SEP) to BGR, and preliminary approval by BGR of the site demographics and other variables, a BGR representative will visit your market and evaluate your specific site for approval. Once the site is approved, you will proceed to negotiate your lease and design a preliminary floor plan showing the operational flow and seating of the restaurant (based on a BGR template). Once the lease is finalized, BGR will approve the lease and preliminary floor plan, resulting in moving into the design, permitting and construction phase.

WHO GETS MY PERMITS AND BUILDS MY RESTAURANT?
You are responsible for obtaining permits and constructing the BGR The Burger Joint Restaurant. You may utilize BGR’s architect and builder to develop your plans and specifications, or retain your own architect and contractor subject to BGR’s approval. In instances where you retain an approved architect and contractor, BGR will provide the standard specifications and design features to you and your architect/engineer. It will be your responsibility to finalize your architectural plans for submittal to the local permitting agencies and to the contractors from whom you intend to secure bids. The contractor and final plans must be approved by BGR (and your Landlord). Before opening your restaurant, BGR must approve you as a qualified operator, which is based on your performance at our Training School. Our staff is available for support and consultation as you proceed thru permitting and construction.

SPECIFICATIONS FOR THE EQUIPMENT, SIGNAGE & FURNITURE?
BGR has a proprietary specifications manual for all required furniture, fixtures, equipment and signage. BGR will provide these specifications to you and/or your vendors/suppliers and contractors, so that your restaurant is properly equipped, and signage, furniture and other essential property meets quality and warranty specifications.

CAN I OPEN MY FRANCHISE IN A BUILDING THAT WAS AN EXISTING RESTAURANT BEFORE IT CLOSED? CAN I USE THE EQUIPMENT THAT WAS LEFT BEHIND? CAN I USE EQUIPMENT I ALREADY OWN?
In certain cases, BGR will allow a BGR operation to be opened in a leased premises that was formerly an operating restaurant. However, it is important to note that BGR will will require that the same floor plan, design and specifications be met in a 'conversion' restaurant, as is required in a newly constructed restaurant.

WHAT KINDS OF TRAINING WILL I RECEIVE BEFORE I OPEN? HOW ABOUT AFTER I OPEN?
Just prior to the opening of your BGR The Burger Joint Restaurant, you (and any key operations management) will be required to attend and successfully complete our Initial Training program. The Initial Training program may last up to seventeen (17) days, and must be completed prior to your opening each Restaurant. A BGR representative will be on site just prior to your opening, and immediately following your opening, to help support you during this important phase.

WHAT TYPES OF MARKETING MATERIALS WILL I RECEIVE?
BGR uses specific marketing materials and promotions in our Company Operated Restaurants. These materials feature the BGR trademark and logo specifications, and are continually modified and expanded based on the impact of each specific marketing and promotional campaign we implement in our local markets.

CAN I USE MY OWN SUPPLIERS? DO I HAVE TO USE PRODUCTS THAT YOU SPECIFY?
Depending on the product, equipment or property involved, BGR may require you to order solely from BGR approved suppliers. Should you wish to have a supplier or vendor be considered with whom you have already established a relationship, you may submit a request for your vendor or supplier to be approved by BGR. It is vital to the overall system's brand and customer mission that only the very best of products and equipment be used in operating your restaurant.

DO YOU HAVE A QUALITY ASSURANCE PROGRAM? WHO ENFORCES QUALITY?
Yes - BGR will continually monitor our Restaurants' standards and quality of operations for every aspect of the business. BGR will, if necessary, take appropriate action in any situation where the brand is being damaged due to poor operational performance and/or inferior products being used in food offerings.

WILL I BE REQUIRED TO USE SPECIFIC POS SYSTEMS IN OPERATING MY RESTAURANTS? WILL I BE REQUIRED TO USE SPECIFIC ACCOUNTING SOFTWARE IN MY BUSINESS?
Yes. BGR has developed a POS for the operation of the Restaurants and management reporting purposes. The BGR POS interfaces with ADP for time clock purposes and payroll processing. Provided your accounting software can empower you to efficiently and effectively produce financial statements (which will be per our Chart of Accounts), BGR will accept most brand name accounting software systems.

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