Habit Burger Franchise Startup Cost, Revenue and Profit Margin
Are you seeking a franchising opportunity with a reputable restaurant brand?
Habit Burger Grill is one of such. The Habit Burger franchise began its operations in 1969. Today, it has grown into a major brand with over 240 restaurant outlets and growing.
This burger-centric fast-casual restaurant offers a variety of menu items consisting of salads, burgers, sandwiches, and more. Habit Burger franchisees get the opportunity to do business under a respectable brand name, thus benefiting from its reach and favorability.
To own a part of this franchise opportunity, you’ll need to meet its financial requirements. So, how much does it cost? Prospective franchisees must meet its total investment requirement of about $1,231,000 to $1,439,000.
Other financial requirements include a franchise fee starting from $35,000, a working capital ranging from $90,000 to $120,000, and a royalty fee of 5.0% of gross sales.
How Much Can I Make as a Habit Burger Franchisee?
This is one of the most asked questions by franchisees with the reasons being obvious; investors looking out for profitable opportunities. Now, answers to questions on profitability aren’t as easy or straightforward as you might think. Profitability rests on multiple factors.
Profitability is influenced by factors such as commercial lease rates, your location, labor costs, and efficiency of your operations among other things. When it comes to the efficiency of operations, we’re referring to how your operations are organized.
An efficient operation will cut down on waste and maximize profits. To do this, there has to be an audit of supplies to find out specific details on how these are utilized. This cuts down on wastes, thus increasing revenue in the process.
Location counts for something and contributes to how profitable your Habit Burger franchise outlet becomes.
Typically, those locations with a significant amount of foot traffic perform better with sales than those with little. So, where your franchise outlet is located will impact on profitability.
Labor cost can affect your overall earnings or profitability because having surplus labor can lead to redundancy which also bleeds the Habit Franchise outlet of revenue.
The best way to solve this is to cut down on your staff and retain only the required number needed.
What Locations are Nearest to Me?
Habit Burger franchise has a presence in four states namely CA, WA, AZ, and NV. Each of these states has many outlets. If you’re in any of these locations, you can begin right away to apply for a franchising opportunity.
However, for areas outside of these states, the best way to find out if you still do business is by contacting Habit Burger. All details about its operations and locations are made available.
The good news is that Habit Burger has ambitious expansion plans. Find out what these are.
As a Habit Burger franchisee, you stand to benefit from its territory rights protection program.
Here, a territory is allocated to you thus preventing unnecessary competition from other franchisees. This is done to enhance your productivity and competitiveness.
This is a crucial aspect of the Habit Burger franchise operation. It covers several areas such as training, financing, marketing, and more.
Habit Burger ensures that all its franchisees get the best support to help them succeed. This creates a win-win situation for all (both franchisor and franchisee).
Training is an essential part of its operations.
Having qualified and joined this franchise opportunity, a training program is organized for its new crop of franchisees. This helps give them the needed skill and knowledge to efficiently run or operate their franchise.
The program is divided into online, classroom, and on-the-job training. Habit Burger gives more preference to on-the-job training with over 1,000 hours being dedicated to it.
Further details on this are found in its franchise disclosure document (FDD).
Unfortunately, the Habit Burger franchise offers no financing support to its franchisees.
However, some level of assistance is provided in this regard through its affordability calculator which gives you a better understanding of financing options available to you.
All Habit Burger franchisees (both new and existing) benefit from the franchisor’s marketing support program. Here, support is offered in key marketing areas that include cooperative advertising, regional advertising, and a grand opening ceremony amongst others.
For specific details on what its marketing support program consists of, the FDD is a ready document to get all the information you seek.
Franchise Agreement Term
Habit Burger has an initial franchise agreement term of 10 years. Within this period, you get the rights to the usage of its brand, business model, and more. So, what happens at the expiration of the initial franchise agreement?
You get the chance to renew your franchise agreement.
However, it involves a shorter renewal term of 5 years. Term renewal isn’t automatic and guaranteed. You’ll need to meet an eligibility criterion that borders around your earlier performance.
Requirements May Change
Habit Burger franchise may make adjustments or changes to its franchise requirements. This is perfectly normal as seen with lots of other franchises.
Therefore, the information provided here (especially those having to do with requirements) may be altered without notice.
Under such circumstances, you’ll need to refer to its updated franchise disclosure document for what its current requirements are. Issuance of the FDD is only possible during the application process. It’s only issued when you meet its requirements (financial) and are willing to proceed.
How to Start
If you feel this is the perfect opportunity for you, the next step is to commence the application process. Habit Burger franchise makes its application process easy for prospective franchisees.
You’ll need to visit its franchise website and fill the short online form and submit.
The form provides spaces for basic information such as your name and contact details as well as your reasons for applying. A franchise representative gets back to you within a short time with the details on how to proceed with your application process.
We’ve successfully highlighted the basic information about the Habit Burger franchise. This should help you decide whether this opportunity is right for you not.