franchise financials
We prioritise transparency and realistic financial expectations
From his many years as a F&B franchisee, 12th Street Burgers founder Adam Khan has extensive first-hand experience of how some brands promote misleading numbers of the actual investment required to be a success.
That’s not how we operate.
We are committed to providing you with clear, honest, and realistic financial information to help you make informed decisions.
Initial investment
Our model is based on low capital expenditure and a realistic ROI.
The initial investment required to open a 12th Street Burgers franchise is approximately £100,000.
We have established excellent relationships with banks and lenders who are willing to loan up to 50% of the total investment, subject to status. This can significantly ease the initial investment burden, making it more accessible for aspiring franchisees.
This investment typically covers securing a 1,000-1,200 sq ft shell unit and all necessary services to get your diner up and running:
Diner location
Your investment includes securing a suitable location for your 12th Street Burgers diner and preparing it for fit-out. We assist you in identifying prime locations that meet our high standards, ensuring the best possible start for your franchise.
Fit-out
Transforming your shell unit into a signature 12th Street Burgers diner involves a comprehensive fit-out process. This includes interior design, furnishings, decor, and signage, all tailored to create the perfect American-themed casual dining atmosphere.
Equipment
Our investment package covers all essential equipment, including kitchen appliances and POS systems. This state-of-the-art equipment ensures efficient operations and a superior customer experience.
Training and support
Your comprehensive training programme includes a two-week course at our flagship Milton Keynes diner, as well as 10 days of onsite support post-launch. Training and ongoing support covers all operational aspects, ensuring you and your team are well-prepared to run a successful diner.
Potential returns
Our business model is designed for profitability.
For franchisees who follow our business model and put in the necessary effort, the potential EBITDA is approximately £80,000 per unit per year.
The split of income between dine-in, takeaway, and delivery services will vary between locations, providing flexibility and multiple revenue streams. This diversified income approach helps mitigate risks and ensures steady cash flow.
Ongoing fees
To ensure the continuous success and growth of your 12th Street Burgers franchise, annual royalty and marketing fees are in place. Both of these are calculated as a percentage of your net sales.
Royalty fee
This supports ongoing operational support, training, and access to our proven business model. It ensures you receive the necessary guidance and resources to maintain high operational standards and profitability. It is 5% of your net sales.
Marketing fee
This contributes to comprehensive local, regional, and national marketing campaigns. This helps to drive brand awareness, attract new customers, and retain existing ones – ultimately boosting your sales and profitability. It is 1% of your net sales.