Built Custom Burgers
Built Custom Burgers offers customizable burgers and other quick-service fare in a casual dining setting. Known for its build-your-own burger concept, it operates in the fast-casual restaurant sector.
Built Custom Burgers franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Built Custom Burgers restaurant franchise ranges from $417,500 to $1,007,000 for a traditional franchise unit and from $408,500 to $1,297,000 for a non-traditional franchise unit. This includes the initial fees ranging from $34,000 to $52,500 for a traditional location and $25,000 to $42,500 for a non-traditional location that must be paid to the franchisor or its affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on the type of restaurant. For a traditional Built Custom Burgers restaurant, it is $30,000 [p.33], while for a non-traditional restaurant, it has been updated to $25,000 [p.384]. This fee is payable in full upon signing the Franchise Agreement and is non-refundable [p.33].
What are the ongoing royalty and advertising fees?
The ongoing fees include Royalty Fees and Advertising Fees, which are to be paid separately from any fees under a previous franchise agreement [p.384]. These fees are generally earned based on the value of purchases during the period and are recognized as revenue by the company over the term of the respective agreement [p.554]. The specific amounts for these ongoing fees are not detailed in the provided excerpts, but they may be greater than those in the assignor's current franchise agreement upon assignment [p.448].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD excerpts, you cannot freely sell or transfer your franchise without good cause as specified by the franchisor. Good cause includes but is not limited to specific reasons determined by the franchisor [p.101, p.479]. This restriction does not prevent the franchisor from exercising a right of first refusal to purchase the franchise [p.101, p.479].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes failure to comply with lawful material provisions of the franchise agreement and not curing such default within a reasonable time [p.116]. Additionally, termination is permissible if the franchisee is adjudicated bankrupt, makes an assignment for the benefit of creditors, voluntarily abandons the business, or is convicted of a law violation related to the franchised business [p.116]. Further, upon termination for good cause, the franchisor must purchase from the franchisee at fair market value certain inventory and supplies [p.116].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. According to the FDD excerpts, you may face competition from other franchisees, company-owned restaurants, and other channels of distribution controlled by the franchisor [p.71]. This isn't specified in the excerpts.
What training and ongoing support does the franchisor provide?
The franchisor provides a Training Program consisting of In-Store Training (approximately 120 hours) and New Owner Training (approximately 40 hours). This program is conducted either online or at the franchisor's training center in Scottsdale, Arizona. Additionally, the franchisor reserves the right to require further training if the franchisee does not operate according to their Systems Standards [p.240, p.309, p.171].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, and it authorizes no such representations from its employees or representatives [p.86]. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that outlet’s performance [p.86]. Additionally, the franchisor can provide financial performance information under certain conditions as permitted by the FTC's Franchise Rule [p.86].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling only certain items; however, if the Franchise Agreement requires goods, supplies, inventories, or services to be purchased exclusively from the franchisor or sources designated by them, you may have to do so. These items might be more expensive than those available elsewhere [p.3]. Additionally, you must submit specifications and other information for any new equipment, supplies, or inventory items not previously approved by the franchisor before purchasing them [p.257, p.189], and the franchisor may inspect proposed suppliers and revoke approval if they fail to meet current standards.