If you have a strong entrepreneurial spirit and are looking to invest in a big moneymaker, burger franchises can be a smart investment. Of course, money won’t be handed to you on a silver platter. You need to choose which burger franchise like Zac’s Burgers, to join carefully and be prepared to work hard to make your initial investment pay off.
Here are some tips on how to make money investing in burger franchises.
Have Strong Background in Industry
While some franchisees have been successful with little industry experience, in order to maximize your full potential for profit, you really need to have a strong background in the burger franchise business. Whether it is being an employee at one or an earlier management or ownership role, this experience will help you know from the start the best way to operate your franchise unit.
Keep Rent, Other Expenses Reasonable
It is simple mathematics. You can’t make a good return on you investment if you are not making more money than you are putting into your business.
Rent tends to be a big factor. If your rent is really high, it is going to have a big impact on your bottom line and make it difficult to stay open during any lean times. When choosing a location to rent, don’t be afraid to negotiate hard for good terms.
You should also look closely at your labor and food costs on a daily basis so you can keep waste at a minimum and so you know when to advertise and when to have extra staff scheduled.
Do More than Just the Minimum
No matter which franchise system you decide to join, they are going to have certain requirements you will need to fulfill as one of their franchisees. Instead of chafing at the bit about being told what to do, remind yourself that they are trying to guide you to run a successful operation. Commit to doing more than just the minimum requirements expected by your franchise system and you will see business flourish in no time at all. Advertising and labor, especially, are areas where it is important not to scrimp on.
Invest in Sales & Marketing
While certainly one of the benefits of joining an already established burger franchise is being able to benefit from their brand power, you still need to cultivate a following at your location. In the months leading up to the opening of your burger franchise and throughout the year, make a point to invest in sales and marketing. No business can be successful if you don’t have any customers.
Be Prepared to Work Hard
Owning a franchise is not a passive investment by any means. You need to be prepared to work hard. In the beginning it will feel like an almost 24/7 job, but fulfilling your dreams is worth it, right?
At first you will be handling all the supervising, scheduling, purchasing and workflows, but eventually if things go well you will be able to hire a full-time manager. Keep in mind though that you will still have to manage your manage and keep close tabs on everything going on at your burger franchise and keep in constant contact with the franchisor. Being an absentee owner is never a good idea.
Become a Silent Franchise Partner
If you’d really rather have a less hands-on role, whether it is because you don’t have a lot of experience, or have other investments you also have to worry about, then becoming a silent franchise partner is a valid option.
This just means that you team up with a partner who will be responsible for the daily running of the franchise while you provide the capital for it. If the business is profitable, you will see a return in investment and maybe even more without having to be in the restaurant every day.
Create a Portfolio of Franchises
To really make a lot of money in burger franchises, you really should create of portfolio of burger franchises that you have ownership in for maximum economic growth. You will have to have good managers running the day to day for you at each location and of course you should be monitoring everything closely as well.
Picking the right burger franchise program to join is also important. Once you are certain that owning a burger franchise is right for you, the next step is finding which franchise you want to join. Most likely if you are interested in burger franchises, you have a favorite restaurant or two as well as a few favorite dishes. Think about what you love the most about them and use that as a basis for your list. Even if you already have a strong affinity for one particular restaurant, don’t jump hasty into a decision. It is still important to shop around to ensure that you are making the best choice.
Other things you should be looking for in a burger franchise are a strong support structure and training program. What this looks like tends to vary so be clear on what you would prefer. You want to work with a franchisor who is invested in the success of his or franchisees. Of course, money is always a factor too; so be honest about what you can afford. Burger franchises range from under $10K to 500K or more depending on the brand. Stick to what you can realistically afford without going bankrupt in the first couple of years.
Zac’s Burgers is a family-oriented business who is currently located in the Philadelphia area and is looking to expand. Zac’s is known for its quality food, top notch service and friendly atmosphere. An initial investment in Zac Burger’s will cost you anywhere between $119,500 and $198,000 with no requirements for net worth or liquid assets, although you will need to have at least $35,000 on hand for the first 3 months for additional costs. If you want to get into the burger franchise business, this is a good first investment because of its low startup costs.
Whichever burger franchise you choose, make sure you look carefully at your finances, your expected return in the investment and also think carefully about whether your vision for your restaurant matches that of the parent company. The more prepared you are, the best chance you have of succeeding.
For more information about Zac’s Burgers and making money investing in burger franchises, give them a call or visit their website.