This information is from the 1965 franchise kit---
The Burger Chef franchise program was one of the first, beginning in 1958. Almost half of the Burger Chef operators operated more than one store. Burger Chef Systems located, surveyed and leased the most desirable locations in high traffic areas. They then oversaw the construction of the distinctive Burger Chef building, which was designed for maximum efficiency and eye appeal. Finally, Burger Chef installed the equipment for storage and preperation-most from General Equipment, Burger Chef's parent company. The complete package was then presented to the franchise holder on the day the store was ready to open. Before this the operator completed a two week course of training in accounting, inventory, purchasing, sales and advertising at Burger Chef's training center in Indianapolis, Indiana. Everything about the operation was covered from morning opening to closing at night, from cutting potatoes to hiring help. The trainee would try hard to get that burger to the customer in forty-five seconds. The new operator would then work at a Burger Chef store.
A local Burger Chef representative would be on hand after the opening to make sure the operation ran smoothly, and returned at least once a month. The new owner received full advertising support-newspaper, radio, TV ads and point-of-sale material. In addition to its training center, Burger Chef opereated a research and development facility for equipment in St. Louis, Missouri.
The Burger Chef Profit Picture
Potential operators were told that the net profit from thier Burger Chef would be far above the average in the fast food industry. Thier success depended on how they supported the Burger Chef program. Since Burger Chef knew how much the overhead expences should be, if they got out of line an area representative worked with the operator to correct the problem. the same was true of all problems that developed in the operation. They were advised that the Burger Chef image created excitement in the community from the moment construction started, and that a Burger Chef made a profit from the first day, and that they didn't need to build up a following, but they would have to work to keep it. Burger Chef conducted a survey that proved the profit would increase from ten to thirty percent each successive year after the first.
Cash Required For a Burger Chef Franchise-1965
Two plans were available to begin a Burger Chef franchise. This depended on if the operator wished to finance some of the cost. The franchise fee and lease deopsit of $5,000 was not financeable. Many paid cash for the equipment package and signs, an investment of $28,500. Burger Chef was able to arrange a Chattel Mortgage to finance these items for 36 months. a down payment of $10,000 was required for this. For a 'comfortable start', Burger Chef suggested a sum of $4,500. This money was for operating capitol-opening inventory of food, paper goods and supplies, cash registers, insurance, utilities and miscellanous tools and equipment.
The total cash required with the cash plan was $43,000. Using the finance plan $24,500 was required.
Here's a summary of the cost of a Burger Chef franchise in 1965:
Franchise Fee-cash $5,000, finance plan $5,000
Deposit-cash $5,000, finance plan $5,000
Equipment -cash $28,500, finance plan $10,000*
Reserve-cash $4,500, finance plan $4,500
Totals-cash $43,000, finance plan $24,500
*Down payment
When the finance plan was chosen, Burger Chef issued insurance for $18,500, added to the finance balance.
For comparision to the above figures, an average new house would cost $16,000 in 1965.
Burger Chef operators were charged a service fee of 2 1/2% of their annual gross sales. They were told that this fee was so small that it would be returned to them in the savings they would get on their paper goods alone.
The Burger Chef Franchise Story
