If you are thinking about opening a Burger King in Los Angeles in 2025, you probably want to know how much it will really cost and what it takes for you to qualify. Running a fast-food franchise in California can be rewarding, but the price tag and requirements are not small. Here is a clear look at the numbers and details you need to know before you take the leap.
What are the startup costs to open a burger king in california
The average startup cost to open a Burger King in the United States ranges between $363,400 and $4.7 million. In Los Angeles, you should expect to be closer to the higher end of that range because of real estate prices, construction costs, and labor expenses in California.
Your costs will include:
- Building or leasing a restaurant space
- Equipment such as grills, fryers, and refrigeration
- Furniture and fixtures for the dining area
- Signage and branding
- Initial inventory of food and supplies
- Technology such as point-of-sale systems
Most new Burger King locations in major cities like Los Angeles fall between $2 million and $4 million once everything is factored in.
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How much is the burger king franchise fee
To own a Burger King franchise, you must pay a franchise fee of $50,000. This fee covers the right to operate under the Burger King brand for a 20-year agreement.
This is a one-time upfront payment, but it does not include ongoing fees you will have to pay every month.
What are the ongoing fees for running a burger king
Once your restaurant is open, you are required to pay Burger King a percentage of your sales each month. These are called royalty and advertising fees:
- 4.5% royalty fee (based on monthly gross sales)
- 4.5% advertising fee (also based on gross sales)
These fees will go directly to Burger King’s corporate office to support brand operations and their nationwide marketing campaigns.
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What are the financial requirements to qualify
Burger King requires potential franchise owners to meet certain financial standards before being approved. These are:
- Minimum net worth: $1 million
- Minimum liquid assets (cash or easily accessible funds): $500,000
If you do not meet these requirements on your own, you may need to find partners or investors who can help you reach the financial thresholds.
How much can a burger king make in Los angeles
In theLos Angeles, Burger king restaurants can generate a lot of money-as much as $1.6 million yearly for traditional stand-alone stores.
The revenue may be higher due to the population of the city, traffic, and the demand for food on the go (fast food). Nevertheless, there is also higher operating cost such as wages, rent and taxes which sometimes eats into the profit these restaurants generate.
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How to apply for a Burger king franchise in california
Here is how you can apply:
- Submit an application through Burger King’s official franchise website.
- Provide details about your financial history and experience.
- Attend an interview and business review with Burger King’s corporate team.
- Secure a location that meets Burger King’s real estate requirements.
- Sign the 20-year franchise agreement and pay the $50,000 fee.
Burger King’s approval process is competitive, and the company looks for owners who can demonstrate strong business experience and the ability to manage staff.
Is owning a Burger king worth it in los angeles
s but wWhether it’s worth it or not to you is dependent on your own goals. If you open a Burger king location in Los angeles you have to be ready for the cost, which will be pretty high upfront and possibly include ongoing fees. However, you can earn a lot more yearly if it is located in a busy area and is well managed.
It is important to carefully weigh your capital against the possible returns before moving forward.
