Are you a fan of the Wahlburg brothers or just enjoy eating a burger? Consider entering into the Wahlburgers franchise which offers of course burgers, as well as sandwiches, shakes, and beverages. Wahlburgers is a fast-casual restaurant that has 49 locations across the United States, two locations in Canada and one location in Germany. The fast-casual restaurant is a $12.8 billion industry but with this, there is a high amount of competition. The fast-food industry ranks 3.4 out of 4, 4 being the highest in competition. There is also a high-risk ranking of 3.3 out of 4, 4 being the most amount of risk.
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00:00 Introduction
01:05 Franchise Cost
01:30 Recoup Your Investment
01:53 Conclusion
#WahlburgersFranchiseWorthTheHype #WahlburgersFranchise #VettedBiz
This is great to see where in the future there will still be a want for this industry.
Sounds appealing? Keep reading to see if Wahlburgers is the right franchise for you.
Paul, Donnie, and Mark Wahlberg licensed the name “Wahlburger” from Tom Wahl for their restaurant. The first Wahlburger opened in Hingham, Massachusetts in 2011.
The CEO and president of Wahlburgers is John Fuller since May 2020.
Shipyard Burger and William Leonard alleged the Wahlberg brothers and other affiliates of the Wahlburger franchisee breached a fiduciary duty they owed to them, breached the terms of the operating agreement, and misrepresented business opportunities to them. The plaintiffs sought out damages, the production of certain records, and accounting to determine the value of the plaintiff’s ownership. On June 7, 2019, they entered a settlement agreement in which they acquired William Leonard’s interest.
The initial franchise fee is $40,000. Although it will be $50,000 if the franchise is not being developed to the Development Agreement.
The initial investment of the franchise is $1.5 million to $2.7 million which is quite costly. This is due to expenses such as construction/leasehold improvements, travel/living expenses when training, and furniture and equipment.
The construction/leasehold improvements are usually always the largest expense for the initial investment. They cost from $900,000 to $1.8 million. This is because building a restaurant is very expensive which all depends on the size, condition, and location of the restaurant. Wahlburgers also require specific fixtures and construction materials but you can buy those from any supplier. There is some flexibility with these prices being not set and stone by being able to choose the supplier although specific materials are required. Another cost is travel/living expenses when training which cost from $80,000 to $125,000.
Wahlburgers covers your training but you have to cover living, travel, and salary expenses during this time. This can add up especially if you are bringing a lot of employees to be trained. This expense all depends on where you stay, how far away the training is and the number of employees being trained. Lastly, there is furniture and equipment which costs from $350,000 to $450,000. The furniture and equipment are a one-time fee that has to be approved by the franchise. This includes the sign of the franchise and this has to be paid before the opening of the restaurant. The initial investment is very pricy but you have some leeway to control what you buy.
The chart above shows various costs that don’t have a clear cost or a percentage of your gross sales which can be hard to predict. There is the brand fund contribution which is 1% of your gross sales which is advertising for your restaurant. This will ultimately benefit you where the money you put into advertising should have a return where more customers will come due to this. There is also market research and testing to test new food products and customer trends which you may be charged. You also may be charged for new product and supplier testing which is when you suggest a new product or supplier to the franchise. Overall there aren’t many ongoing costs but it’s still good to keep in mind when running your franchise.
The Royalty Fee is 6% of your gross sales.
Wahlburger does not provide financial information on the performances of their existing franchise. The information will be provided when the franchisor is seriously considering buying a unit and has evidence to prove this. According to their FDD, Wahlburger does not make predictions on how a franchise will perform and instead provides actual records of that outlet.
Visit the franchise profile on Vetted Biz: https://www.vettedbiz.com/wahlburgers...
Want to speak with a franchise specialist about Wahlburgers or another franchise? Click here:
https://share.hsforms.com/1ZtNM19w4R8...
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