Case Study

Finance Helps Secure Burger King Franchise Approval

Company —
Burger King
Business Type —
First time franchisee
Requirement —
Restaurant Fit-out
Solution —
Lease Finance

Asking Yourself How to Open a Burger King Franchise?

Learn how a first-time franchise owner leveraged tailored funding solutions from Portman to secure a franchise agreement and premises fit-out. This case study showcases the transformative potential of financial collaboration, driving businesses toward their goals and fostering business ambition.

Challenges

  • Securing financial backing: Financial resources needed to be demonstrable in this individual’s business plan to secure the franchise opportunity with Burger King.
  • Limited Cash Flow: Restricted financial resources prevented the individual from investing in infrastructure upgrades.
  • Competitive Pressure: To thrive in highly competitive high-street location where provisions for superior, service and quality were vital.

How Much Does a Burger King Franchise Cost?

Buying a franchise business can come with a number of hidden costs. If you’re looking to enter the food industry, royalty fees, working capital and business operational outgoings will all need to be considered, on top of property investments and fit outs when costing. 

Burger king food

Solution

Portman Finance Group tailored a franchise financing solution to address franchisees specific needs, offering the following components:

  1. Equipment Financing: Securing state-of-the-art kitchen equipment through Portman’s customised funding options. Helping optimise operational efficiency and reducing long-term maintenance expenses.

  2. Flexible Repayment Terms: With flexible repayment terms, the franchisee aligned financing with its cash flow patterns, ensuring manageable monthly payments without straining financial resources.

  3. Quick Approval Process: Portman’s streamlined approval process minimised disruptions, enabling Burger King Workshop to receive funding promptly and maintain smooth operations.
Brand new franchise fit-out

Results & Benefits

The collaborative efforts of the Burger King franchisee and Portman Finance Group yielded remarkable outcomes, including:

  1. Enhanced Operational Efficiency: Installing the latest kitchen equipment elevated operational efficiency, offering the potential for increased productivity, shorter customer wait times, and superior service quality.

  2. Cost Savings: Upgraded equipment reduced maintenance costs, allowing the franchise to allocate funds towards other critical areas of the business.

  3. Competitive Advantage: With a revitalised local infrastructure, a competitive edge was gained in the local fast-food landscape through securing a high foot fall location, ultimately driving revenue and profitability.
Burger King burger

Other Franchise Brands we Have Funded

  • Subway
  • Pizza Hut
  • German Donna Kebab
  • Caspas Desserts
  • Boost Trampoline Parks

Looking for More Franchise Information?

There are a myriad of franchise opportunities out there. Whichever one is right for you, they’ll all come with their own variety of costs to consider. Portman has extensive experience supporting some of the biggest franchise names, putting together individual finance or leasing solutions that are just right for you and your new venture. Our advice is to talk to us early, let us help you plan the finance you’ll need in good time, so everything is ordered well in advance of your big opening.

Partner with Portman, for a successful future

At Portman Finance Group we are focused on serving the needs of you and your business, and have been doing so for thousands of other businesses since 2007, raising over £1 billion in funding for UK SMEs. 

We take the time to truly understand your business and what you need, ensuring we secure the right funding for you. As both a broker and a lender, we can also offer financial options that others cannot. We promise you will have one point of contact from start to end, providing you solutions quickly, sometimes within hours.

We can offer you and your franchise:

As well as….

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Hire Purchase

Hire purchase usually involves paying the VAT and a deposit up-front. Fixed monthly repayments are then made, affected by whether you pay off the entire loan over the term or chose a final balloon payment. The final option to purchase is guaranteed for a nominal fee, transferring ownership of the asset to the customer.

Hire purchase is well-suited for situations where a company definitely wants to own the item at the end of the term, often where the asset has a significant usable lifespan, a high residual value and will not need to be upgraded.

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Lease Finance

Equipment leasing allows a business to acquire hard or soft assets without the upfront costs associated with large purchases. A lender purchases the item, the business then leases it through fixed monthly payments over an agreed term.

Typically, asset finance is provided for high value ‘hard’ assets such as machinery, equipment, or vehicles, but Portman also arranges asset finance for ‘soft’ assets such as IT, fitness, catering, or vending equipment, as well as premises fit-outs, furniture or even air-conditioning.

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Business Loans

Business loans are a way of borrowing money, which is repaid in monthly instalments, including interest, over an agreed term. Business loans are a common way to help smooth out cashflow fluctuations and take opportunities where otherwise they could be missed due to a lack of working capital.

Business loans can be secured or unsecured. Portman typically provides unsecured loans which can be more flexible and do not require collateral but are likely to require a personal guarantee. Secured loans are tied to an asset which the lender can claim ownership of if repayments are not made, these may be used in equipment refinance deals.

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Start Up Loans

New businesses often need an injection of finance to get them off the ground. Asset finance for new businesses allows you to focus on running your company and bringing in customers, confident that you have the equipment, vehicle or stock you need without the large initial outlay.

Using finance for your equipment means that you preserve the credit card or overdraft for contingency and operating expenses when the unexpected happens.

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Equipment Refinance

If you recently bought a high-value item outright but would now prefer to have financed it, we can help with a sale-and-lease-back agreement. If the item is less than 3m old, give us a copy of the invoice and we will calculate the current value. After a few checks and acceptance of the term and monthly repayments, we can give you the cash equivalent of the invoice to put back into the business. You’ll then make fixed monthly payments including interest, whilst your asset earns you money.

If your business owns high value assets that are not currently on finance, subject to a valuation, it is also possible to use them as security for a loan, with lenders offering a cash loan up to a % of the asset’s value.

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Recovery Loans

Recovery Loans offer an excellent way of making sure your business gets back on its feet after the long-term effects of the pandemic and subsequent supply chain disruption. Businesses with turnovers up to £45m, including those who have previously benefited from the government’s CBILS, BBL or RLS, can apply.

Recovery Loans can be used for any legitimate business purpose or simply to provide cashflow. Rates are capped and the government continues to guarantee 70% of the outstanding balance, giving added security for lenders who are now able to consider finance for businesses who may have previously found it difficult to obtain.

Up to £2m can be borrowed on terms from 2 to 6 years. Your personal private residence cannot be taken as security.

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