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Several Steps to become a BURGER KING® Franchisee

September 25, 2008 By: admin Category: Business Support Services

Everyone knows that Burger King is a well developed Franchisee company. Joining BK can be one of your steps to get more money. Below are the nine steps to be a BURGER KING® Franchisee.


1.Initial contact

The prospective franchisee calls our dedicated BURGER KING® franchise hotline number on 0870 0429469 to register their contact details with us quoting reference BKWEB. Alternatively a prospective franchisee may send an e-mail enquiry to ukfransales@whopper.com quoting BKWEB to register their contact details. A member of the Burger King Franchise Recruitment team will then contact you at the earliest opportunity. We need to know the following 5 things about you during that telephone conversation:
* Have you made a decision to become self-employed, or are you ready to invest in another business;
* Depending on the type of restaurant and the investment model, the total amount invested by a franchisee can be between £150,000 and £750,000 (not including the cost of land in a free standing location). The franchisee will need to contribute at least 40% of the capital with the rest being funded by business loans. Therefore in an average drive through investment of circa £500k, a franchisee must contribute a minimum of £200k as equity in the form of liquid or quickly realisable assets. Do you have the funding available?
* Can you make a decision about the BURGER KING® franchise opportunity within 60-90 days?
* Are you willing to locate within an area determined by the BURGER KING® market development plan?
* Do you want to learn more about the industry and the concept, how the franchise operates, and how a franchisee will make money in the business?

Following our initial conversation with you a BURGER KING® Franchise Consultant will contact you to discuss your application further
2. Franchise application

Successful applicants will be sent the initial Franchise Application Form and supporting documentation. Once our office is in receipt of the completed application form and supporting documentation, and if the prospective franchisee meets the BURGER KING® initial criteria, an interview is arranged between the prospective franchisee and our Franchise Development Team.
3. Internal approval

After the initial interview our office will perform initial finance/credit and legal approvals based around the information submitted and discussed.

For financial approval we review each franchise application with reference to matters such as certain financial ratios and other criteria for all proposed and existing restaurants, as shown or estimated by the applicant. This financial evaluation is carried out for the Company’s internal purposes and is not a guarantee or assurance of adequacy for success of your particular site. For information purposes, we can advise you that, unless other relevant factors apply, it principally looks for the following:
i) Cash Flow/Fixed Charge Coverage Ratio
ii) Debt/Equity Ratio
iii) Current Ratio

To evaluate new franchisees starting up a business we require certain information, which may include personal net worth statements and trade and personal references, in addition to the Initial Corporate Franchise Application Form.

Legal approval involves in summary meeting the legal and ownership requirements of the Company. In addition the prospective franchisee must no be in breach of any legal obligation to, or be involved in a claim against the Company or its affiliates.

In parallel the prospective franchisee will go through a 20 hour orientation and evaluation at a designated BURGER KING® restaurant.
4.Franchise training programme and Senior Management Interview

The franchise sales team or training dept will contact the prospective franchisee to arrange the structured 220 hours (4weeks) of training which BK require to be successfully completed by the Franchisee in order to be able to give full operational approval. This is then followed by a further 11 weeks of training after a formal interview by members of the BK senior management team.
5. Franchise approval

The above is not an exhaustive list of those matters, which Burger King Corporation and its affiliates may take into account in determining whether to grant or maintain Franchise Approval. Franchise Approval may be withdrawn if the franchisee fails to continue to meet the relevant requirements and Burger King Corporation will not grant a franchise if Franchise Approval is not in place when the restaurant is due to open.
6.Site Selection

If the prospective franchisee already has a proposed site then they will move straight to the site approval stage.

If not the prospective franchisee will liaise with our Development team to discuss potential locations that may be available as part of the current BURGER KING® Development process.
7.Site approval (subject to receipt of preliminary franchise approval)

Once the prospective franchisee has found a suitable site, the prospective franchisee will be required to submit our New Restaurant Site Pack. The Development Team will review the New Restaurant Site Pack and accept or reject the proposed site in its sole discretion.

If approval of the proposed site is granted written Site Approval and an ‘A’ number is issued and the prospective franchisee may proceed to secure the proposed site. The prospective franchisee must receive written Site Approval.
8.Final Approval/Construction Starts

Once the prospective franchisee has successfully completed the 220 hours structured training programme, final operations approval is given.

Each prospective franchisee must submit all building designs, colours and landscaping to us for written Building Plan Approval. No construction may begin without written Building Plan Approval.

The prospective franchisee must receive written Building Plan Approval and a BK number (BK#) and all subsequent changes must also be approved in writing.

Prior to the restaurant opening our Construction Manager will confirm his approval for the compliance of the restaurant. At this point the remainder of all required Franchise Training must be completed, involving both the franchisee and the management and staff.
9. Franchise Agreement/Opening

Prior to the restaurant opening (normally 14 days prior) the Franchise Development Department will arrange with the Legal Department the preparation of a Franchise Agreement to be sent to the franchisee for signature and return. At the same time the Franchise Development Director will request the Finance Department to issue an invoice for the Franchise Fee, which is sent to the franchisee for payment.

NB. A signed Franchise Agreement and payment of the Franchise Fee invoice must be in place prior to the restaurant opening.

Once all the above steps of the development process have been completed the franchisee is authorised to open the BURGER KING® restaurant.

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