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Maryland poised for business growth with Steak 'n Shake

Business formation isn't always about creating a brand new business. Sometimes, Business formation and planning is required when expanding a business or franchise into a new location where business regulations and legal matters may differ from those in its current location. In many cases, the new location will welcome a business that brings revenue and jobs, but owners and operators must still understand where liabilities and issues could hide.

Steak 'n Shake, which is known for its milkshakes and hamburgers across the country, is planning to open 10 locations in Maryland. The growth plans for the franchise begins with a single location opening in the fall. The restaurant plans to bring in 140 to 160 jobs.

Each restaurant costs around $3 million to open, says the franchise-rights owner for Maryland. He says that cost includes a $40,000 fee for each location that must be paid to the Steak 'n Shake franchise. It sounds like a large expense, but the location should pay for itself quickly. The franchise-owner says that the locations are projected to create revenues of $5 to $6 million each year.

According to the owner, the 10 restaurants that are currently planned are a stepping stone to bigger things. He says he hopes to own 22 Steak 'n Shake locations across the state by the year 2022. Not only are the plans good for the owner's success. He points out that the growing number of restaurants he opens will create additional jobs and revenues in various cities throughout the state.

Every business type has different challenges as they start out and later as they expand. From family businesses to franchises, the challenges can include legal issues, compliance with regulations and financing. Having a strong team of advisors can prevent trouble later on.

Source: Baltimore Business Journal, "Steak 'n Shake entering into Maryland with 10 planned locations" Brittany Cheng, Jul. 18, 2014

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