Signing out of account, Standby...
- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$141K - $573K
- Units as of 2020
Here’s what you need to know if you’re interested in opening a Illegal Burger franchise.
Illegal Burger was founded in 2013 in Arvada, Colorado, by Jim Nixon. Nixon developed the Illegal Burger brand to "change the way we look at burgers, from the details of our sustainable decor, to the quality products used in our food." Illegal Burger uses medicinal CBD in their menu and boasts that they are the first CBD restaurant with a franchise opportunity.
Why You May Want To Start an Illegal Burger Franchise
With a broad menu packed full of burgers, chicken, and vegetarian or vegan options, there may be options on the menu for everyone. An ideal Illegal Burger franchisee should fit the Illegal Burger brand culture and be willing to follow a proven business model. They should also believe in the use of CBD's health benefits and future usage.
Many unique things differentiate Illegal Burger from other restaurant franchise opportunities. The biggest differentiator is their line of CBD products. CBD is now FDA approved to treat many maladies, including anxiety and sleep disorders. Illegal Burger may also be unique because it focuses on growing the local community.
There are multiple Illegal Burger locations across Colorado, and the company is headquartered in Arvada, Colorado. Your franchise may require only a few employees to operate and create the homemade recipes. All Illegal Burgers patties are fresh, never frozen, all-natural, and contain beef with no antibiotics or growth hormones.
What Might Make an Illegal Burger Franchise a Good Choice?
The initial franchise training is in Arvada, Colorado at the Illegal Burger headquarters. It includes classroom training, leadership development, and business management. Here, franchisees will also learn how to make the Illegal Burger product offerings. You will also learn how to best market and advertise your brand.
Subsequently, field training and support are provided up until the grand opening period. Illegal Burger also provides a learning management system that is designed to provide continued support to new franchisees and encourage growth and stability.
As you decide if opening an Illegal Burger franchise is the right decision for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if an Illegal Burger franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
How To Open an Illegal Burger Franchise
To be part of the Illegal Burger team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
Before making any financial commitment or signing an agreement with Illegal Burger, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Illegal Burger franchising team questions.
About Illegal Burger
- Franchising Since
- 2019 (3 years)
- # of employees at HQ
- # of Units
- 5 (as of 2020)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Illegal Burger franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $140,985 - $572,685
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $200,000 - $500,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
- $50,000 - $100,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 10% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Illegal Burger has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 41 hours
- Classroom Training
- 44 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Illegal Burger? Request a free consultation with a Franchise Advisor now.
Are you eager to see what else is out there? Browse more franchises that are similar to Illegal Burger.
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