As a restaurant owner, I understand how important it is to choose the right franchise opportunity. If you are considering entering the burger bar market, Bad Daddy’s Burger Bar is a name worth knowing. This article will give you a detailed overview of the brand, how much it costs to buy into the franchise, the requirements to qualify, the steps to get started, and the potential profits you can expect. I’ll explain everything in simple terms to help you make a smart decision.
Brand Profile of Bad Daddy’s Burger Bar
Bad Daddy’s Burger Bar is a fast-casual restaurant chain that specializes in gourmet burgers, hand-cut fries, and craft beverages. The brand was founded in 2007 in Charlotte, North Carolina, with the goal of serving high-quality, fresh ingredients in a fun and inviting atmosphere.
The menu features a variety of customizable burgers with unique toppings, including a build-your-own burger option. Along with burgers, Bad Daddy’s offers salads, sandwiches, shakes, and craft beers. The restaurant prides itself on using fresh, never frozen beef and making its food from scratch daily.
The atmosphere at Bad Daddy’s is casual but upscale, appealing to families, young professionals, and burger enthusiasts alike. The brand has grown steadily across the U.S., known for its strong customer loyalty and innovative marketing.
The Cost of a Bad Daddy’s Burger Bar Franchise
Starting a Bad Daddy’s Burger Bar franchise requires a significant investment, but the brand offers a solid foundation and support to help you succeed.
Initial Franchise Fee: The upfront fee to become a franchisee is approximately $50,000. This fee secures your rights to operate under the Bad Daddy’s name and gives you access to their proven systems.
Total Startup Costs: Including equipment, leasehold improvements, signage, and initial inventory, expect to invest between $1.5 million and $2.5 million to open your first location. Costs can vary depending on the restaurant’s size and location.
Royalty Fees: Franchisees pay an ongoing royalty fee of 6% of gross sales. This fee supports ongoing brand management and national marketing.
Advertising Fees: You will also contribute about 3% of gross sales toward a national advertising fund. This ensures your franchise benefits from consistent marketing campaigns.
Other Costs: Additional expenses include training, insurance, licenses, and working capital to cover operations during the first months.
Though the initial investment is high compared to smaller franchises, the scale and reputation of Bad Daddy’s justify the cost.
Conditions for Owning a Bad Daddy’s Burger Bar Franchise
Becoming a Bad Daddy’s franchisee requires more than just money. The company looks for partners who fit their values and can manage a high-quality restaurant business.
Experience: Ideally, you should have previous experience in the restaurant or hospitality industry. While first-time franchisees are considered, having a background in managing or owning a foodservice business is a big plus.
Financial Requirements: You will need liquid assets of at least $750,000 to cover your investment and operating costs. Additionally, a net worth of $2 million or more is usually required.
Commitment: Bad Daddy’s expects franchise owners to be actively involved in the business, especially in the first year.
They value hands-on operators who want to grow the brand locally.
Location: The franchise prefers urban and suburban areas with good foot traffic and visibility. Ideal locations include shopping centers, busy streets, and near entertainment districts.
Training and Support: You must complete the company’s training program before opening. This includes both classroom instruction and hands-on experience at existing locations.
The Process of Getting a Bad Daddy’s Burger Bar Franchise
If you want to become a franchisee, here is the typical process you will go through:
Initial Inquiry: Contact Bad Daddy’s franchise department via their website or phone to request information. You will receive a Franchise Disclosure Document (FDD), which explains all the details and obligations.
Application: Submit a franchise application form. This will include your personal background, financial information, and business experience.
Interview: If your application meets the basic requirements, you will be invited to interview with the company’s franchising team. They want to understand your goals and how you plan to run the business.
Review FDD: Carefully read the FDD, which provides important legal and financial details. You may want to hire a lawyer or accountant to help.
Site Selection: Work with Bad Daddy’s real estate team to identify and secure a suitable location for your restaurant.
Sign Franchise Agreement: Once all parties agree, you will sign the franchise agreement, officially becoming a franchisee.
Training: Attend the comprehensive training program. This usually lasts several weeks and covers everything from food prep to marketing.
Build-Out and Setup: Prepare your restaurant according to Bad Daddy’s brand standards. This includes design, equipment installation, and hiring staff.
Grand Opening: Launch your Bad Daddy’s Burger Bar with support from the corporate team. They help with promotions and local advertising to get your restaurant noticed.
Bad Daddy’s Burger Bar Franchise Profit
Many entrepreneurs ask, “Can I make money with a Bad Daddy’s Burger Bar franchise?” The answer depends on several factors, but the brand’s proven business model offers solid profit potential.
Average Sales: Established locations typically generate between $1.5 million and $3 million in annual revenue, depending on market size and location.
Profit Margins: The restaurant industry average net profit margin ranges from 5% to 15%. Given Bad Daddy’s focus on quality and operational efficiency, many franchisees report profits near the upper end of this range.
Break-even Point: Franchisees often break even within the first 12 to 18 months, after covering initial expenses and ramping up customer traffic.
Growth Potential: Successful owners can open multiple units, increasing overall earnings. Bad Daddy’s supports multi-unit franchise development.
Additional Income Streams: Franchisees benefit from catering orders, special events, and merchandise sales, which add to profitability.
While no business guarantees profits, Bad Daddy’s Burger Bar provides a well-known brand and a loyal customer base that give franchisees a strong chance to succeed.
Conclusion
Owning a Bad Daddy’s Burger Bar franchise can be a rewarding business if you have the right experience, finances, and commitment. The brand offers a proven menu, solid support, and a growing market for gourmet burgers. While the investment is substantial, the potential for profit and growth makes it an appealing option for serious entrepreneurs.
Related topics:
- Tooney’s Flavor House Franchise Costs, Profit & Requirements For 2025
- MOOYAH Burgers, Fries & Shakes Franchise Costs, Profit & Requirements For 2025
- Dick’s Drive-In Franchise Costs, Profit & Requirements For 2025