What should I check before buying a burger franchise resale?
Before buying a burger franchise resale, check the age of the grills and fryers against the franchisor’s replacement schedule, the next required re-image, the mix of dine-in, drive-thru and delivery sales, the approved beef and bun supply terms, and the unit’s recent brand audit results. These decide what you must spend after you take over.
A resale of a chain burger restaurant is a different purchase from an independent burger shop. The brand sets the equipment, the look of the building, the menu and who may supply the food. Much of what you will spend after closing is decided by the franchisor, not by you. The checks below help you see that list before you commit.
Cooking equipment and the replacement schedule
Burger brands usually require a particular grill or broiler and fryer platform. Ask for the age and service history of each major machine, then ask the franchisor which models it still approves and when it expects owners to replace older ones. A kitchen that looks fine today may be due for a costly swap soon after you arrive. The equipment checking page goes further.
The next re-image
Most brands expect owners to refresh the dining room, exterior and signs from time to time. Ask what the next required re-image will involve, when it falls due, and whether the seller has started any of it. Ask whether the franchisor will credit or defer work if a transfer is pending. Get the answers in writing from the franchisor, not only from the seller.
Sales mix and supply terms
Look at how sales split between the counter, drive-thru and delivery. Delivery apps change margins and staffing, and a store that leans on one channel is exposed if that channel changes. Then ask who must supply the beef and buns, and what the distributor terms are. You will inherit those terms, so read them before closing.
Audit results and what to ask for
Brand audits score cleanliness, food quality and service, and repeated poor results can lead to action from the franchisor. See how to read brand audit reports. Before you commit, ask for:
- the last few audit reports and any open action items
- equipment service records and the franchisor’s approved model list
- the re-image notice or requirement, if one exists
- the current distributor agreement and delivery platform terms
Related reading
10 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I read a fast food franchise’s brand audit reports before buying?
- Expert answerHow do I check a fast food franchise’s kitchen equipment before buying?
- Expert answerHow do I check a fast food franchise’s staffing before buying?
- Expert answerWhat should I ask the seller during a fast food franchise handover?
- Expert answerHow do I compare fast food franchise brands before buying one?
- Expert answerWhat should I check about the drive-thru before buying a fast food restaurant?
- Expert answerHow do I check a fast food franchise’s sales records before buying?
- Expert answerWhat do fast food franchise owners wish they knew before buying?
- Expert answerIs buying an existing fast food franchise cheaper than opening a new one?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canadian Franchise AssociationIndustryInterested in Buying a Franchise?
- 02Business Development Bank of CanadaGovernment5 tips to finance a franchise purchase
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 04Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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