Killer Burger
Killer Burger offers gourmet hamburgers and casual dining in a relaxed atmosphere. Known for its fast-casual concept, it competes in the quick-service restaurant sector.
About Killer Burger
Killer Burger is an American restaurant chain.
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Killer Burger franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Killer Burger restaurant ranges from $461,500 to $899,000. This includes $40,000 that must be paid to the company [p.1]. If area development rights are purchased, the range is between $471,500 and $989,000, with an additional payment to the company of $50,000 to $130,000 [p.1].
What is the initial franchise fee?
The initial franchise fee is $40,000 and it is considered fully earned and nonrefundable upon receipt [p.9, p.15, p.62].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on 5% of the Killer Burger Restaurant's Gross Sales, while the advertising fee (contributions to the Brand Fund) is 1% of the Gross Sales. These fees are payable at the same time as royalty payments [p.74].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not mention the duration of the initial franchise agreement or the renewal process beyond stating that a then-current form of the renewal franchise agreement must be executed no later than 180 days prior to the applicable Opening Date for each Restaurant.
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires Franchisor's consent [p.118], which they cannot unreasonably withhold. Additionally, you must pay a transfer fee; this is 25% of the current initial franchise fee, up to $10,000 [p.86]. If transferring your rights and obligations to an entity owned by you, the fee can be the out-of-pocket costs incurred by the Franchisor for such transfer [p.86]. The Franchisor retains the right to change its business model without your consent, which might require additional investments or harm your franchise business [p.3].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD focuses on start-up costs and working capital but does not detail specific net worth or liquid capital requirements for franchisees to qualify.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory under your franchise agreement. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands that the company controls [p.32, p.31]. Additionally, the franchisor retains the right to operate Killer Burger Restaurants in Captive Venues within your protected area without providing compensation for any sales generated there [p.32].
What training and ongoing support does the franchisor provide?
The franchisor, Killer Burger, LLC, provides franchise sales, marketing, and training services for franchisees along with other administrative services. According to the financial statements cited [p.159] and [p.146], these services include salaries and wages, payroll taxes and benefits, office expenses, travel, professional services, and advertising and marketing.
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2023, there were 6 franchised locations that were not open and operating for the entirety of the 2023 calendar year [p.42]. The FDD does not specify the number of closed or terminated franchised outlets beyond this information [p.42].
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can provide financial performance information about its outlets if there is a reasonable basis for it [p.42]. However, the franchisor does not make any financial performance representations about future financial performance of franchises or company-owned outlets [p.47]. If you request it, written substantiation of the data used in preparing this representation can be provided upon reasonable request [p.47].
What am I restricted to selling, and where must I buy supplies?
You are restricted to using and selling only the products and services that the franchisor has expressly approved in writing. You must purchase from approved suppliers certain items required for the operation of a Killer Burger Restaurant, including food products and ingredients, equipment/tools, approved signage and graphics, and the POS system [p.37, p.20]. This includes obtaining these items only from suppliers designated by the franchisor or those they have approved in writing [p.20].