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Earnings Claims of Top Franchises Revealed

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Considering a BGR The Burger Joint Franchise? Don’t Overlook These 25 Important Franchise Fees

by Franchise Chatter on August 23, 2017

in Franchise Fees, Hamburger Franchise



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Don't Invest in a Franchise Until You Check Out This List

BGR The Burger Joint Photo by Reg|Photography4Lyfe

If you are considering a BGR The Burger Joint franchise, don’t get blindsided by these 25 important franchise fees (from the initial franchise fee, to the royalty fee, to 23 other fees found in Items 5 and 6 of BGR The Burger Joint’s 2017 FDD).

1.  Franchise Fee:  $40,000

  • You must pay BGR a $40,000 initial franchise fee (“Franchise Fee”) immediately upon the signing of your Franchise Agreement. The Franchise Fee is deemed fully earned and non-refundable upon payment. Except as provided in this Item, the Franchise Fee is uniform to all franchisees in BGR’s System.

2.  Other Pre-opening Fees:  $300 technology fee

  • In addition to the Franchise Fee, you must pay BGR a non-refundable $300 technology fee for use of BGR’s online management system and intranet portal immediately upon the signing of your Franchise Agreement, which BGR currently remits immediately to its third-party supplier on your behalf.

3.  Area Exclusivity Fee:  $20,000 multiplied by the number of Restaurants BGR grants you the right to open within your development area



  • If you wish to enter into a Development Agreement and have the exclusive right to develop a given development area, then you must pay BGR an Area Exclusivity Fee amounting to $20,000 multiplied by the number of Restaurants BGR grants you the right to open within your development area.

4.  Reduced Franchise Fee:  $10,000 for each Restaurant you are granted the right to open within your development area

  • Upon payment of the Area Exclusivity Fee, you will only be required to pay BGR a reduced Franchise Fee amounting to $10,000 in connection with each Restaurant you are granted the right to open within your development area.
  • This reduced Franchise Fee for each Restaurant opened under your Development Agreement is due immediately upon the earlier of (i) the date you execute BGR’s then-current Franchise Agreement for that Restaurant; or (ii) at least 90 days prior to the expiration of the development period wherein you must open and operate that Restaurant.
  • Except as disclosed in this Item, the Area Exclusivity Fee and reduced Franchise Fees associated with BGR’s Development Agreement are uniformly imposed, and are deemed fully earned and not refundable upon execution of your Development Agreement.

5.  Multi-Unit Fee:  $40,000 for the first Restaurant, plus $30,000 per each additional Restaurant

  • If you enter into a Multi-Unit Agreement to own and operate multiple Restaurants in identified local markets (but without any territorial protection within a development area), then you must pay BGR a Multi-Unit Fee equal to (i) $40,000 for the first Restaurant, plus (ii) $30,000 per each additional Restaurant (“Multi-Unit Fee”).
  • Upon signing the Multi-Unit Agreement, you must pay BGR: (i) $40,000 to cover the entire portion of the Multi-Unit Fee applicable to your first Restaurant; and (ii) $15,000 for each additional Restaurant you are required to open under the Multi-Unit Agreement, to cover one-half of the Multi-Unit Fee applicable to each respective Restaurant.
  • You must pay BGR the remaining $15,000 due for each additional Restaurant upon signing the Franchise Agreement for that additional Restaurant.
  • The Multi-Unit Fee is due in full at the time you execute your Multi-Unit Agreement and is deemed fully earned and non-refundable upon payment.
  • Once you have paid both portions of your Multi-Unit Fee, you will not be required to pay BGR any Franchise Fee at the time you enter into its then-current form of Franchise Agreement for each Restaurant it grants you the right to open under your Multi-Unit Agreement (provided you timely open these Restaurants).
  • The Multi-Unit Fee is uniformly calculated and imposed on BGR’s franchisees. Typically, BGR will only enter into Multi-Unit Agreements to open 5 or less Restaurants.
  • BGR offers qualified prospects that can also demonstrate that they are an honorably discharged United States veteran a discount amounting to 10% of any of the initial fees described in Item 5 (other than the $300 technology fee) that you owe in connection with agreements that you sign.

6.  Royalty:  5.5% of Net Sales

  • Due Date:  Deducted on Tuesday of each week via an electronic funds transfer system (“EFT”).

7.  National Advertising Fund:  up to 2% of Net Sales

  • Due Date:  Deducted on Tuesday of each week from your bank account via EFT.
  • Not currently established or imposed.

8.  Local Advertising:  1% of Net Sales

  • Due Date:  Monthly in accordance with BGR’s standards and specifications.

9.  POS System Usage Fee:  $300 per month

  • Due Date:  Monthly, to POS system provider.

10.  Additional Initial Training:  $500 per day, plus BGR’s expenses if additional initial training is required

  • Due Date:  At time of additional initial training.

11.  Additional/Supplemental Training:  $500 per day, plus BGR’s expenses for additional on-site training in excess of that provided for in the Franchise Agreement

  • Due Date:  At time of additional/supplemental training.

12.  Annual Conference:  currently $0

  • Due Date:  At time of conference.

13.  Insurance:  cost of insurance. If you fail to maintain your insurance as required, BGR has the right to procure insurance on your behalf and charge an 18% administrative fee in addition to the cost of the insurance.



  • Due Date:  As required by insurer or broker.

14.  Audit/Inspection Costs:  cost of BGR’s audit and/or inspection

  • Due Date:  As required.

15.  Financial Records and Reports:  cost of preparing financial statements and tax returns; $100/month fee if any monthly reports, including financials and/or tax returns, are not timely submitted

  • Due Date:  As incurred.

16.  Taxes on Payments to BGR:  amount of tax or assessment

  • Due Date:  When imposed by taxing authority.

17.  Transfer Fee:  50% of then-current Franchise Fee

  • Due Date:  Upon transfer.

18.  Renewal Fee:  $5,000

  • Due Date:  Upon renewal.

19.  Indemnification:  amount of claim or judgment

  • Due Date:  When incurred.

20.  Supplier Approval/Testing Costs:  BGR’s cost of approval

  • Due Date:  When incurred.

21.  Post-Termination and Post-Expiration Expenses:  costs and expenses associated with ceasing operations and de-identifying yourself with the System

  • Due Date:  When incurred.

22.  Insufficient Funds, Interest, and Collection Costs:  $100 Insufficient Funds Fee, plus interest at 18% or highest lawful interest rate for commercial transactions

  • Due Date:  As incurred.

23.  Remodeling:  up to 2 times during the Initial Term with a cap of $50,000; once each renewal term with a cap of $25,000

  • Due Date:  Upon request, at renewal.

24.  Extension Fee:  one-time 45-day extension at no cost if Restaurant is under construction; one-time $5,000 fee for a 6-month extension if Restaurant is not open within 12 months of Franchise Agreement date

  • Due Date:  Upon request and approval for extension.

25.  Technology Fee:  then-current Technology Fee charged by BGR or its designated vendor (currently $300/year)

  • Due Date:  Yearly.


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