Burger restaurants are an American staple. They’ve remained popular for decades, and don’t seem to be going away any time soon! If you’re looking into franchising your own burger joint, you might want to consider Wayback Burger.
Before you can open your own Wayback Burger restaurant, you will have to pay the initial franchise fee of $35,000. Including this and everything else needed to open, the total initial investment is estimated between $209,000-$525,000.
Below, we’ll discuss more about the cost of opening a Wayback Burger franchise restaurant. Then, we will highlight the benefits of working with this company in particular.
- Cost Breakdown of a Wayback Burger Franchise
- About Wayback Burger
- Is Wayback Burger Profitable?
- Criteria for Owning a Wayback Burger Restaurant
- Training and Assistance Provided
- Final Thoughts
- Related Guides
Cost Breakdown of a Wayback Burger Franchise
When you apply to franchise a Wayback Burger restaurant, you will need to pay a $35,000 franchise fee.
The initial franchise length is 20 years, and you can renew the term for two consecutive five-year terms. Each time you renew your franchise, you will have to pay 10% of the original franchise fee.
Compared to other popular burger restaurants, the initial investment you’ll make into a Wayback Burger is relatively low.
By the time you’re ready to open, your investment will be somewhere between $209,000-$525,000.
At this time, Wayback Burgers does not offer financing for potential franchisees. However, they do offer a Veteran’s Incentive of $5,000 off your initial franchise fee.
The low initial investment level makes Wayback Burger a very accessible franchising option. You don’t need nearly as much capital as you do to invest in other franchises, so this is a great option for budding entrepreneurs.
You may be wondering what all the money you invest in your franchise will go towards. In the table below, we’ll outline the average cost breakdown for your initial investment into this restaurant.
|Store space improvements||$60,000-$220,000|
|Initial store inventory||$6,000-$8,000|
|Outdoor fixtures and furnishings||$5,000-$10,000|
|Advertising for Grand Opening||$5,000|
|Necessary permits and licenses||$6,000-$12,000|
Other Fees and Expenses
Once you begin running your Wayback Burger franchise, you will be responsible for paying certain fees. Some of these are charged on a regular basis, while others only apply if something out of the ordinary occurs.
These fees include the traditional royalty and advertising fund fees, but there are others to consider as well. Below, we’ll discuss these fees and when they will apply.
|Royalties||Weekly||5% of your gross weekly sales, or $400. The greater amount will be charged.|
|Local marketing and advertising||Monthly||2% of your monthly gross sales.|
|Advertising fund||Weekly||2% of your weekly gross sales.|
|Regional advertising cooperatives||Weekly||Up to 2% of your weekly gross sales.|
|Advisory council fee||Varies||Only applies if the franchisor establishes an advisory council. If they do, you are required to participate.|
|Interest||Annually||15% of your gross sales, or the maximum amount permitted by local and state laws. The lesser amount will be charged.|
|Training||Daily||$200 per person per day of training.|
|Equipment maintenance, upgrades, and updates||Varies||Generally between $2,000 and $3,500 per year.|
|Refurbishment||Varies||Typically between $500 and $5,000 per year.|
|Insurance||Monthly||Variable between $0-$300 per month.|
|Common area maintenance||Monthly||Approximately $975-$2,000 monthly.|
|Walmart sublease fee||Monthly||Somewhere between 2% and 12% of your gross monthly revenue.|
|Transfer fee||One time||If you wish to transfer ownership of your franchise to someone outside of your partnership, it will cost 50% of your initial franchise fees. If you’re transferring ownership to another entity listed on the agreement, the cost will be equal to the franchisor’s expense.|
|Site selection||One time||If you have the franchisor assist you in finding a second site location, the cost will be equal to their expenses.|
|Supplier approval and sample testing||Varies||You will pay the actual cost of this approval and testing.|
|Audits||One time||If your location is audited, you must pay the audit fees.|
|Indemnification||One time||You will pay the entire liability cost assigned to you.|
|Default on indemnity||One time||The charge will be equal to the cost of collection and the attorney’s fees.|
About Wayback Burger
What began as a Delaware hamburger stand called “Jake’s Hamburgers” in 2001 has since seen international success, with hundreds of locations worldwide.
Today, Wayback Burger is based in Cheshire, CT. They specialize in American cuisine, including hamburgers, hot dogs, and milkshakes.
Wayback Burger first began offering franchised locations in 2008 through Jake’s Franchising, LLC. Throughout their three decades of operation, respect has always been at the core of what they do.
They have a mission to unite people of all different backgrounds through the comfort food customers love.
The company commits to this mission by having the phrase “do the right thing” in the back of their minds at all times. They show this in the way they treat their guests, as well as how they source their ingredients.
Wayback Burger refers to their mission as “The Way.” The five core commitments of The Way include:
- All In. Creating solutions that benefit their guests, their franchise owners, and their overall brand.
- Think Timeless. Making choices in their menus and restaurants that will never go out of style.
- Stay True. Ensuring that they provide customers and team members with genuine experiences every single day.
- Take Action. Doing things better, and doing things together.
- Go Way Back. Always keeping nostalgia at the heart of everything they do.
Is Wayback Burger Profitable?
The biggest thing that separates Wayback Burger franchises from other burger franchises is their low cost of entry.
Wayback Burger restaurants have a much smaller footprint than most similar restaurants, making the initial investment low.
This also gives franchise owners the ability to open multiple locations at once without a significant investment.
While your location’s profitability will depend on factors including local demand and labor costs in your area, this is typically a profitable venture.
From 2017-2018, Wayback Burger franchises increased by 14%, showing that this restaurant will continue to grow.
How Many Wayback Burger Locations are There?
As of 2020, there are over 160 Wayback Burger locations worldwide. 143 of these locations are owned by franchisees. There are stores in 30 different U.S. states and seven countries, with a pipeline presence in 38 countries.
Wayback Burger is committed to strategic growth. They’re always welcoming new franchise owners, and encourage qualified individuals to apply to join their team.
Criteria for Owning a Wayback Burger Restaurant
You must meet the financial and operational criteria to become a franchise owner. To be considered, you or your partner will need a minimum credit score of 700.
In addition, you will need a total liquidity of at least $125,000. Wayback Burger welcomes partnerships, so if you don’t meet the criteria on your own, you can apply with a business partner.
Each individual who owns 5% or more must agree to the franchise terms. This includes both the confidentiality and non-competition covenants.
Wayback Burger does not allow owners to act as absentees. Either you or your manager must always be present during peak hours.
You will have to run your store full-time, following all service and product standards.
Training and Assistance Provided
Wayback Burger prides themselves on their high level of guidance and support towards franchisees. They offer both initial and ongoing support for each one of their franchise owners to ensure business success.
Initial Mandatory Training
Before their location opens, franchise owners must attend a 15-day training session. Training will occur at either the company headquarters in Cheshire, CT, or at another location designated by the company.
The company provides this training to both the owner and one designated manager of the franchise.
Before attending this training, each person will have to earn their ServSafe certification at their own expense. The training course includes 102 on-the-job hours and 40 hours of classroom training.
The Wayback Burger team wants every location to thrive, so they provide the support franchise owners need to ensure this happens.
They offer help with advertising and marketing, as well as ongoing training and equipment upgrades. If you ever have a question, you can contact a representative online or by phone to get answers.
Support before, during, and after your Grand Opening is crucial for your business’s success. Wayback Burger understands this, and offers comprehensive support for franchisees to ensure their business is profitable.
If you are looking to invest in a burger restaurant without investing millions upfront, Wayback Burger is a perfect choice.
Including your $35,000 franchise fee, the initial investment is estimated between $209,000-$525,000.
The low cost of entry makes it an excellent franchising option for new entrepreneurs and seasoned professionals alike.