In this FDD Talk 2017 post, you’ll learn the following:
- Section I – Background information on the BurgerFi franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a BurgerFi franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a BurgerFi franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of BurgerFi’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average gross sales for the 13 franchised and affiliate-owned BurgerFi Restaurants that were open and operating for at least 48 months as of December 31, 2016
- 2016 average gross sales for the 73 franchised and affiliate-owned BurgerFi Restaurants that were open and operating throughout all of 2016
- 2016 average cost of goods sold and labor costs for the 13 affiliate-owned or managed BurgerFi Restaurants that were open and operating throughout all of 2016
Section I – Background Information
11 Things You Need to Know About the BurgerFi Franchise
Testing Popularity of Plant-Based Burger
1. In early July, BurgerFi added the Beyond Burger, a plant-based burger from Beyond Meat, to the menu at eight of its restaurants (Malibu, California; New York City; Poughkeepsie, New York; Philadelphia, Pennsylvania; Coral Springs, Florida; Coral Gables, Florida; and two stores in Delray Beach, Florida). BurgerFi plans to roll out the Beyond Burger at all of its locations by the end of the summer.
2. The Beyond Burger was first introduced to the public last year at Whole Foods and is currently available at Veggie Grill, a small California vegetarian chain. The burger is made from proteins derived from peas and other plants, has no cholesterol, but oozes “grease” when cooked and “bleeds” beet juice.
3. Although BurgerFi already has a veggie burger on its menu, Paul Griffin, the executive chef at BurgerFi, wanted to add a plant-based burger that mimicked meat; he chose the Beyond Burger after sampling dozens of other similar products. According to Griffin, the Beyond Burger is different from BurgerFi’s VeggieFi burger because it “truly tastes like burger” and “when you eat it, your mind tells you you’re eating beef.”
Development Deals with Three Multi-Unit Franchisee Groups
4. In early June, BurgerFi announced that it had signed development deals with three multi-unit franchisee groups in an effort to further the chain’s expansion in the Southeast and Northwest. BurgerFi signed deals with BullaFi, which will build three restaurants in the Raleigh, North Carolina area; QSR by RAM, which will open two restaurants in Alabama and Georgia; and H&F Investors, which will open a total of four restaurants in Washington and Oregon.
5. Corey Winogard, CEO of BurgerFi, says that the “current pace of new development deals echoes the enthusiasm of consumers coast to coast for the BurgerFi brand.” Winogard also says that BurgerFi plans to open around 12 more stores by the end of 2017, bringing the total number of BurgerFi restaurants up to 109.
First International Location
6. In late September 2016, BurgerFi opened its first international location in London, England. The restaurant is owned and operated by franchise group Ground Round Limited, which plans to develop a total of 10 new locations throughout the U.K. over the next several years.
7. Jamie Wood, founder of Ground Round Limited, believes that BurgerFi will succeed in the U.K. market because the corporate team “goes above and beyond to set their franchise partners up for success.”
8. BurgerFi was founded in 2011 by John Rosatti and Lee Goldberg in Lauderdale-By-The-Sea, Florida. Rosatti was inspired to open BurgerFi after the all-natural Angus “CEO Burger” from his other restaurant, The Office in Delray Beach, became the top selling item.
9. This is where Rosatti’s vision for “The BurgerFication of the Nation” began as he wanted to find a way to make all-natural burgers accessible to everyone. The burger chain has become known for its use of high-quality ingredients such as 100% natural Angus beef that is free of hormones and antibiotics.
10. Franchising began the same year the first BurgerFi restaurant opened and today there are nearly 100 locations in the U.S. and two restaurants in London, England.
Entrepreneur’s Franchise 500
11. BurgerFi has ranked on Entrepreneur’s annual Franchise 500 list for the first time in 2017 at No. 418.
Section II – Estimated Costs
- Please click here for detailed estimates of BurgerFi franchise costs, based on Item 7 of the company’s 2017 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on BurgerFi’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.
Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis
- All of the data disclosed below is as of December 31, 2016. This data is not audited, and is derived from information provided by franchisees as well as from affiliate-owned Restaurants.
Part 1 – Gross Sales of Restaurants Open at Least 48 Months as of December 31, 2016
- BurgerFi had 13 Restaurants open and operating for at least 48 months as of December 31, 2016.