5 Burger King Restaurants in Iowa Sell for $1

With COVID-related layoffs creating a larger-than-ever pool of skilled franchisee candidates, it’s a good time to be in franchise development. But it may be an even better time to be a franchise buyer, as some franchise owners squeezed by the pandemic are eager to unload businesses that are in the red.

According to Nation’s Restaurant News, Tasty Restaurant Group, a franchise group with more than 180 Burger King and Pizza Hut locations, made a major addition to its portfolio this week for a minimal investment, purchasing five Burger King restaurants for just $1.

Tasty Restaurant Group will assume all of the restaurants’ assets as well as what are presumably outsized liabilities, though the financial performance of the restaurants has not been disclosed. Even if the restaurants carry substantial debt, they may prove to be a lucrative investment in the long run for an owner who can afford to turn them around.

“Quick service restaurants have performed well over the past few months, most notably due to the sector’s ability to quickly adapt to social-distancing requirements with minimal interruption,” Triton CEO Craig Faggen said in a statement. “We are thrilled to expand our footprint of Burger King restaurants in western-Iowa, which we expect will provide strong cash flow due to improved economies of scale and increased market share.”

As franchise owners look to free up cash, prospective buyers would do well to keep their eyes open for once-in-a-lifetime deals. If you’ve got the wherewithal to take on a little debt, it’s a good time to be an investor.

Read the full article at nrn.com.