Burger King Franchise Cost in India [Investment, Profit]

. 6 min read
Burger King Franchise Cost in India [Investment, Profit]

Burger King is a privately held, American fast-food restaurant chain. The company has 11 million customers worldwide and has restaurants in over 75 countries. It was founded in Florida in 1953.

After McDonald’s, Florida-based Burger King is the largest burger chain in the US. It not only delivers sumptuous burgers but also provides the best quality customer support and services. This American fast-food chain has managed to make itself popular in the global food industry and has a sizable customer base in different parts of the world.

Range of Products Available

One of the most admired food items available at a Burger King joint is their classic ‘Whopper’ burger. Apart from a wide variety of burgers, it also offers a commendable range of sandwiches, crispy fries, shakes and ice creams that are loved by all. The chain also offers breakfast options.

How to Get a Franchise of Burger King in India

Burger King has over 200 outlets in the country. It is not only popular in metropolitan cities like Delhi, Mumbai and Bangalore, but also in cities like Chandigarh, Patiala and Jaipur. There are plenty of perks associated with starting a Burger King joint. The fast-food chain helps the owner of a franchise in case of any enquiries or problems.

There are a few steps that need to be followed in order to open a Burger King Franchise in India. One also needs to know about the Burger King Franchise cost in India. But before that, you need to know that the company offers three options when it comes to franchising:

1. Individual agreements

2. Entity agreement

3. Corporate agreement

How to Apply for a Burger King Franchise in India

In order to become the owner of any franchise, there are specific steps that an individual is required to follow. The same holds for investing in Burger King.

  • The first step that a person has to take in order to become a Burger King franchise owner is to click on the company’s official website.
  • On opening the website, the person has to submit an application form applying for a Burger King outlet franchise.
  • The potential investor’s application is reviewed by the support staff of the company.
  • If the application gets accepted, the individual is contacted by the company to take things forward.

Burger King Franchise Requirements

  • The franchise has to enlist for a training program conducted by the company itself to help people learn about the fast-food business and the industry. It helps people fully comprehend how to run a burger chain.
  • The next requirement is regarding the location of the restaurant. The company has listed where all a person can open an outlet and this information is divided into three categories. The first category includes institutional locations like bus stations, airports, train stations, metro stations, sports arenas, government building areas, etc. The second category includes commercial areas like shopping malls. The third category includes non-conventional areas like gas stations, grocery stores, etc.
  • Another requirement is that a franchisee needs to use the outlet for the single purpose of running a Burger King restaurant. The restaurant has to be open for the minimum hours listed in the franchise agreement.

Burger King Franchise Cost in India

A Burger King franchise costs around $3,398,600 in the US. So, the amount of money that a person needs to invest in order to become the owner of a Burger King franchise in India comes to over 20 crores. Apart from that, the individual needs to pay a royalty fee as specified by the company.

Burger King is definitely one of the most expensive franchises to own. By now you know that getting this franchise can be lucrative yet costly. However, rest assured that you will get maximum support from the Burger King franchisor. Because this food chain has a brand value, you are less likely to incur losses.

Ongoing Fees For Burger King Franchise and Other Charges

After you have assessed the total cost of setting up a Burger King franchise in India, you can start running your business. But you need to be aware of certain ongoing expenses like:

1. Royalty

The franchisee needs to pay 4.5% of the monthly gross sales to the company as royalty.

2. Advertising Cost

The franchisee needs to spend about 4% of the total gross sales on advertising of their Burger King restaurant/outlet so that people in a particular location know about its existence.

3. Building Improvement and Maintenance

This one is an optional expense. You can personally choose not to take up this expense. But as we are elaborating on Burger King franchise cost in India, it is worth listing. For building improvements and maintenance, you need to spend between $500 and $700 (although the cost may slightly vary depending on the location).

4. Tax

If you open a small franchise, then you may not have to pay taxes. However, for a great franchise such as Burger King, you need to pay taxes to the government. The tax percentage varies from place to place. On average, a Burger King franchisee has to pay 18% tax to the Government of India.

5. Training

When you open a Burger King restaurant, you are required to hire new staff. As this franchise is a huge brand in itself, there are strict quality guidelines that need to be followed by every owner in any part of the world. To ensure the quality standards are met, the company offers quality training to staff members. The training program costs around $2500.

Before you open an outlet, you must finish this training program. Usually in India, the training program takes place at the Burger King franchise head office in Mumbai.

Businessman plan profit margin growth represented by graph

Burger King Franchise Profit Margin

There is no fixed number or statistic to underline the lucrativeness of a Burger King outlet in India. The franchise is growing real quick and gaining popularity all across the country. Sales amounting to Rs 375 crore rupees in 2018 indicate that Burger King will prove profitable for an individual wanting to own a Burger King joint.

Also read:

1) How To Start Your Own Franchise?
2) Know All about the Starbucks Franchise Cost in India
3) Get Details on Domino’s Pizza Franchise Cost in India
4) Get Detailed Information on Amul Franchise Cost in India
5) OkCredit: All you need to know about OkCredit & how it works.

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Q. Can you open a Burger King outlet in India?

Ans. Yes, Burger King does allow franchises in India.

Q. How much does it cost to open a Burger King outlet in India?

Ans. The cost of investment is over Rs 20 crore. Apart from that, a 4.5% royalty fee needs to be paid to the company by the owner.

Q. Who can apply for a Burger King franchise in India?

Ans. Anyone can apply for a Burger King Franchise in India, but before that, make sure that you check out the application process and company requirements.

Q. Who owns Burger King in India?

Ans. A large number of stocks in Burger King is owned by Everstone Capital.

Q. How lucrative is a Burger King franchise?

Ans. There is no clear-cut answer to this question. The immense popularity of the chain can help a potential investor in making substantial profits.