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Updated RecentlyNathan's Famous vs Back Yard Burgers Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Nathan's Famous vs Back Yard Burgers including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $43,000 - $1,071,360 | $465,000 - $1,680,000 |
| Franchise Fee | $30,000 | $35,000 |
| Royalty Fee | 5.5% | 5% |
| Advertising Fee | 2% | 3% |
| Year Founded | 1916 | 1986 |
| Year Franchised | 1988 | 1988 |
| Term Of Agreement | 20 years | 10 years |
| Term Of Agreement | 20 years | 10 years |
| Renewal Fee | 50% of franchise fee | $1K |
Business Experience Requirements |
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| Experience | ||
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | Yes/No | No/Yes |
| Start-up Costs | No/No | No/Yes |
| Equipment | Yes/No | No/Yes |
| Inventory | Yes/No | No/Yes |
| Receivables | No/No | No/No |
| Payroll | No/No | No/No |
Training & Support |
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| Training | - | - |
| Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
| Marketing | Co-op advertising | Co-op advertising, Ad slicks, National media, Regional advertising |
| Operations |
60% of all franchisees own more than one unit Number of employees needed to run franchised unit: 14 Absentee ownership of franchise is allowed. (65% of current franchisees are owner/operators) |
60% of all franchisees own more than one unit Number of employees needed to run franchised unit: 35 Absentee ownership of franchise is NOT allowed. (90% of current franchisees are owner/operators) |
Expansion Plans |
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| US Expansion | - | Yes |
| Canada Expansion | No | No |
| International Expansion | Yes | No |
Company Overviews
About Nathan's Famous
Franchising is a business concept that allows qualified investors to become part of an established, existing “system.” A good way to look at franchising is, you’re in business for yourself, but not by yourself. Strategically, this provides many benefits under a brand name that has consumer awareness and equity.
Nathan’s has taken this basic premise and redefined it to exceed the most stringent business criteria of today’s investor.
Nathan’s offers a wide range of restaurant designs and customized equipment, thereby offering business opportunities to qualified candidates regardless of space constraints or investment limitations.
The estimated initial investment for a BMP Operation ranges from
$43,000 to $86,300, including an initial license fee of $7,500. If you
want to add an “Arthur Treacher’s” BMP Operation to your new or existing
food service establishment, the additional estimated initial investment
will be from $34,404 to $81,486, including an initial license fee of
$7,500.
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#78 in Gator's Top franchises
#286 in Franchise 500 for 2020.
About Back Yard Burgers
What started as a premium quality burger sold in a grocery store in
Cleveland, Mississippi in 1987 quickly caught fire. Lattimore "Lattie”
Michael realized he had a recipe for success and thus opened the first Back Yard Burgers drive-thru restaurant. Customers flocked to it, eating
up the fresh-grilled burgers, great conversation and the neighborly
feel that reminded them of their backyard cookouts. A year later, Back
Yard Burgers opened up in Tennessee and Florida. And the rest is
delicious history.
WHY BE A BACK YARD BURGERS FRANCHISEE?
*Uniqueness - back yard flavor *A proven brand with a solid operating system
*Growth free standing building
*Unique development opportunities
*Non universities, c-stores and professional sports
*Strong positioning
*Signature products
*Persuasive, professional marketing
*Operations support
*Exclusive Territories