The nation's leading business monthly, Entrepreneur Magazine, publishes annual rankings that reveal popular industries and the trends making an impact on their future. Boardwalk Fresh Burgers & Fries was recognized as a top franchise opportunity, ranking #411 in the 33rd Annual Franchise 500.

           This may be an ideal time to buy a restaurant franchise-if you pick the right concept. According to NPD Group, a Port Washington, N.Y., research firm, restaurant traffic is picking up at a time when there is less competition, because over 8,500 independent restaurants closed their doors during the recession. Commercial real estate is available at good prices. And the nation’s franchisers are seeking well-financed newcomers with business experience; some are ever offering incentives, like lowering franchise fees.

            But not all restaurant franchises are winners and some of the concepts touted today may not be around for the long term. Restaurant franchise experts-accountants, lawyers, consultants, and researchers who advise private equity firms and large multiunit franchisees-offer tips on how to research franchises and choose the one that will be profitable.

            “The key question,” says Darren Tristano, vice president of Technomic, a restaurant research and consulting firm in Chicago, “is are you planning to work there or do you plan to own multiple franchise locations?” If you plan to purchase a single restaurant, Brad Saltz, the Cincinnati-based director of restaurant services for SS&G, a national accounting firm headquartered in Cleveland, suggests you choose an established franchise system, where you can invest around $1 million or less; higher investments are tough to finance.

            You can find a list of the Top 100 Chains online, in the free “2011 Chain Restaurant Industry Review” compiled by GE Capital, Franchise Finance, a lender in Scottsdale, Ariz. Technomic collaborates with Restaurant Finance Monitor to publish an annual “Top 400 Restaurant Franchise Company Report” which is sold on Technomic’s website. Look for concepts that are still growing, Mr. Tristano says, but do not have many locations in your area.

            If you plan to parley that first unit into a multiple franchise operation, you may want to look for the next Five Guys Burgers and Fries, an Arlington, VA-based concept that is so successful it sold out all its U.S. franchise territories in just 18 months, says Mr. Saltz. But you must find that new brand before everyone else does. “Do some research,” Mr. Saltz suggests. “Ask about new restaurants when you travel. Read restaurant trade publications and talk to people in the industry. When you hear one name pop up more and more, that’s the time to see if the concept is starting to franchise.”

            But don’t jump too quickly, cautions David Epstein, principal of investment bank J.H. Chapman Group, LLC of Rosemont, Ill. “There are a lot of new concepts being developed today,” Mr. Epstein says. “You want to be sure it’s something that will still be around in 20 years from today.”

            Stay away from fads, Technomic’s Mr. Tristano says. Hot concepts that are already fading include cupcakes, premium ice cream, and Korean-style frozen yogurt, he says. “Thereare even grilled-cheese concepts out there, which I feel is not sustainable because the consumer can make them at home,” he says.

            It may not be too late for Five Guys, but Mr. Tristano says franchises that produce “better burgers” are part of a long-term trend worth considering. Others in the category include Denver-based Smashburger, Mooyah Burgers & Fries in Frisco, Texas, and Boardwalk Burgers & Fries in Columbia, MD. The owners of the Melting Pot Restaurants, Inc, an established fondue concept based in Tampa, FL, recently launched their own “better burger” brand, Burger 21, and are beginning to franchise, Mr. Tristano says.

            Another food segment that should have lasting consumer appeal is restaurant franchises that sell salads, says Mr. Epstein of J.H. Chapman. “But they have to be located near offices, not in shopping centers,” he says. “I also feel that high-end Italian fast food that serves hearth-baked pizza by the slice and sandwiches on crusty bread is a great place to be.” Several such restaurant chains are appearing in urban areas, he says. Watch to see if any start to franchise.

            Several experts, including Mark Saltzgaber, a restaurant consultant in San Francisco, see opportunity in new “fast” pizza concepts that let you pick your own toppings, just as you design your own burrito at (non-franchised) chipotle. “This trend is being driven by technology,” Mr. Saltzgaber says, “because we now have ovens that can cook pizza in a couple of minutes.” But the emerging fast pizza franchise systems are still too young to join, because, “you don’t want to be the guinea pig,” he says. “Wait until a franchiser has demonstrated portability, by proving that a concept works outside of its home turf.”

            If you don’t want to wait for a new trend, Mr. Saltzgaber advises you to “join a winning team,” established franchise systems that are fast-growing, such as Jimmy John’s Gourmet Sandwiches, based in Champaign, Ill, that added 161 units, for a total of 1,131 in 2010. According to the GE Chain Restaurant Industry Review, Detroit based Little Caesar’s Pizza added 192 units in 2010, reaching 2,840, and Buffalo Wild Wings in Minneapolis added 80m for a total of 732 at the end of last year. Look for chains with gains in same-store sales “by an increase in the number of guests, not a raise in prices,” Mr. Epstein advises.

            While full service restaurant traffic has fallen since the recession, “the buzz now is around fast casual category,” says Randy Evans, a partner in Monroe Moxness Berg PA in Minneapolis.

            Technomic defines fast-casual as limited-service or self-service formats with food prepared to order from fresh ingredients. According to the NPD Group, business at fast-casual restaurants like Panera Bread Co. increased 17% between 2007 and 2010, and should continue to grow during the next decade. “Fast-casual has met the definition of value in consumers’ minds,” says NPD restaurant analyst Bonnie Riggs, who works in Rosemont, Ill.

            “Better burgers” fit into the fast casual niche, as does Denver-based Noodles & Co. and Boston-based café chain Au Bon Pain, Mr. Tristano says.

            Once you have found an appealing franchise concept, do your homework, says Mr. Evans. Avoid concepts with inexperienced management teams, shaky financial situations, lots of litigation with current and former franchisees or a high franchise closure rate, he adds. Ms. Riggs advises you to study the demographics of the location you are eyeing; what’s the competition? Who eats out there now and will there be enough of them around in the next 20 years?

            Prices for NPD’s single market reports begin at $5,000. Hire an accountant to go over the unit economics of operating a franchise in a given system and use a franchise attorney to help you understand the legalities of franchise ownership, Mr. Saltz says.

            Then put on an apron and try it out, says Mr. Epstein. “Go to an existing franchise unit and give them a month of your time to work in the store, performing as many jobs as you can. Take time to observe, question, understand, and learn. It’s the only way to know if you are meant to be a restaurant franchisee.”

Better Burger Chain Continues Rapid Growth with Store Openings and New Development Plans

August 15, 2011 // Franchising.com // Columbia, MD. — Boardwalk Fresh Burgers & Fries, known for its fresh, made to order hand pattied burgers and fresh cut fries, has finalized three new master franchise deals with experienced developers for 100 new restaurants across Northern New Jersey, Alabama, Indiana and Kentucky. The three new development agents will open a mix of franchised and sub-franchised restaurants in their respective territories. The deals are the latest in a series of large, master Boardwalk territories secured by seasoned multi-unit restaurant developers. Boardwalk Fresh Burgers & Fries currently has 9 restaurants open in 7 US states, and more than 300 additional new restaurants in development. The company plans to double its unit count to 18 operating restaurants by the end of 2011.

Learn more about Boardwalk Fresh Burgers & Fries' decision to expand via a master franchise growth model.

New Boardwalk franchisees Mukesh Banker and Naresh Bhadiyadara have secured the rights to open 30 Boardwalk Fresh Burgers & Fries restaurants in Northern New Jersey. The business partners are also multi-unit franchisees for Dunkin Donuts and Subway.

New Boardwalk development agent Umang Patel has secured the rights to develop 30 Boardwalk Fresh Burgers & Fries units across the state of Indiana and in parts of Kentucky including Louisville and Lexington. Patel is also a multi-unit Subway franchisee.

Koti Aluri, a serial entrepreneur with investments in the hotel, financial and banking industries, has purchased the entire state of Alabama for Boardwalk Fresh Burgers & Fries development. Aluri is also the master franchisee for Boardwalk in North Carolina, and owns 1 Boardwalk Fresh Burgers & Fries in Springfield, VA. In total, the developer will be opening 40 restaurants in Alabama, 4 additional restaurants in Virginia, and 20 in North Carolina, making him the largest master franchisee in the Boardwalk system.

The three new master franchisees join a group of seasoned developers who were also drawn to the Boardwalk Fresh Burgers & Fries master franchise model, including franchisees from Baja Fresh Mexican Grill, Dunkin Donuts, and Subway, and industry vets including the former CEO of Caribou Coffee and former COO of Jersey Mike's. As of August 2011, Boardwalk Fresh Burgers & Fries has nine area development partners with territories spanning 12 US states.

Said Boardwalk Founder and CEO Dave DiFerdinando, "The Development Agent program is designed for experienced multi-unit restaurant developers who want to grow beyond the limitations of traditional franchise agreements. Master franchising is an exceptional wealth building opportunity for entrepreneurs looking to capitalize on the Boardwalk brand and the fast growing better burger segment."

About Boardwalk Fresh Burgers & Fries

Based in Columbia, Maryland, Boardwalk Fresh Burgers and Fries is experiencing unprecedented growth. The fast casual "better burger" concept features made to order, hand formed, fresh ground beef burgers and fresh-cut Boardwalk fries cooked in 100% peanut oil, along with other family favorites such as hot dogs, grilled cheese, grilled chickensandwiches, salads, and veggie burgers. The New York Times ranked Boardwalk Fries on their baseball stadium culinary scorecard, and AOL Small Business listed Boardwalk Fresh Burgers & Fries in their 2009 "Next Big Chain" report.

Paired with its sister company, Boardwalk Fries, Boardwalk Fresh Burgers & Fries has over 30 years of brand recognition. Keeping its inspiration of the ocean boardwalk theme, the concept provides a family-friendly atmosphere, and great food at great prices.