Why Investing in a Burger Franchise Is Better Than Investing in a New Home

Investing In Burger Franchise

You’ve been saving for a rainy day for what seems like forever and now you have a nice sum of money set aside in your savings account. Do you let it sit there or do you invest it in some way? Buying a new home as an investment has become a popular way of growing wealth.  While buying a new home, fixing it up and selling it for more money or renting it out can work, it is not for everybody. There are many ways to invest your money so it is important that you do your homework. You want to make sure you will get a good return on investment. Here are some reasons why investing in a burger franchise is better than investing in a new home.

Make more long term profits

While you certainly can make a tidy sum on selling your home or even renting it out, by going this route, you are limiting your potential growth. With a burger franchise, if you increase your revenue each month, then the return on your investment will continually grow with no predetermined ceiling to hit. And once your one restaurant is thriving, you can invest some of that money in more restaurants, growing your business.

Learn how to be a successful business owner

Quick get rich schemes can of course be tempting, by why not take a different path where you will learn new skills and become more business savvy. The great thing about buying a burger franchise is that you will have a built-in support network and infrastructure so having a lot of experience isn’t necessary. The experts will help you with all the ins and outs of running a business and get you off to a successful start. Even if you prefer to not be hands on in the running of the business, you can hire a management team that will take care of all the daily tasks that go into running a burger franchise.

Less risky than becoming a landlord

Having to constantly fix repairs at your tenant’s place and deal with late rent checks or worse tenants who complete scam you or destroy your property can be very stressful as well as damaging to you financially. With owning a burger franchise, there is less of the unknown because you have a strong brand and franchise guidance backing you up and helping you navigate the inevitable pitfalls that come with owning a business. And if you delegate right, you will have a strong management team that can adeptly handle any employee or customer issues that might pop up.

Buying into a brand that you believe in

A home is just a home, but when you join a brand, you become a part of something that you believe in. Any burger franchise you might be interested in has spent years building a reputation based on core values whether high quality ingredients, exceptional customer service or sustainable business practices etc. When you buy into that burger franchise you are buying into those values. So if there is a burger franchise out there that shares values that are important to you, then think how rewarding it would be to join forces with them? Also, think about your favorite burger restaurant and your favorite dish. How great would it feel to be able to share that with other people?

Get All the Burgers You Want

Come on, think about being able to enjoy your favorite burger fries whenever you wanted because you own the place. Very cool, right?

Let the Money Speak for Itself

Let’s say you buy a home for $150,000 with a 20% down payment. You will have a $120,000 mortgage that will end up costing you $200,000 over 30 years and that is not including repairs, taxes and the cost of maintenance. If you then go sell your home for, say $250,000 then you have an extra $50,000 in your pocket, and while that might seem like a lot of money, this is a one-time thing. Even if you rent out your home, depending on the market you might only be able to earn $500 to $1500 a month. In a year, that may be about at most just $18,000 dollars. Is that worth an extra mortgage?

With a burger franchise, you are making an initial investment of $120,000 to $200,000 and this includes an initial franchise fee, a lease deposit for at least 2 months of rent, equipment/furnishing, initial inventory, advertising/marketing, insurance and any other permits and licenses. So it is a similar investment, maybe a little less or a little more, but you get so much more for your buck and the potential for earning is so much more too.

According to the research firm Franchise Business Review, a franchise can earn a profit around $66,000 annually and the average restaurant franchise usually earns around $82,033, but can be higher. Think how quickly you can recoup that initial investment.

A Franchise Doesn’t Have to Be a Lifelong Commitment

When you buy a new home it is yours forever unless you sell it. But what if property values go down or you hit a bad housing market, then that house might become an albatross around your neck. With a burger franchise, you enter into a contract that typically last 5 to 10 years so being a franchiser owner doesn’t have to be a lifelong commitment. You do have to work hard while you are at, but when you have made enough wealth and you are ready to move on, you can do so without a lot of hassle.

There is no easy way to become wealthy (unless you hit the lottery of course), but at least with a burger franchise you are buying into a well-established business model with brand recognition. The odds are stocked in your favor right from the beginning. While owning a burger franchise will of course require more time and more elbow grease than simply buying and selling a home, you will see the return on your investment will make it all worthwhile. Investing in a burger franchiser will be a wiser investment that a new home by far.

Leave a Reply

Your email address will not be published. Required fields are marked *