Burger King Franchise Costs, Fees & FDD

Year Business Began: 1956

Franchising Since: 1956

Headquarters: Miami, Florida

Estimated Number of Units: 19,900

Franchise Description: Burger King Company LLC is the franchisor. The franchisor is a wholly-owned indirect subsidiary of Restaurant Brands International Limited Partnership. Burger King franchisees operate quick-service hamburger restaurants offering a limited menu of breakfast, lunch and dinner products.

The franchisor currently has two different forms of franchise agreement, corresponding to three different types of franchise ownership: individual (or owner/operator) and entity. The franchise granted can be operated at the following facility types:

1. Traditional Burger King Restaurant Facility: A self-contained, full-size Burger King restaurant which is located and operated on a site as a freestanding building or within another building structure such as a shopping mall. A traditional Burger King restaurant does not share any common areas with any other businesses and serves the standard approved menu for Burger King restaurants.
   
2. Non-Traditional Burger King Facility: A non-traditional Burger King restaurant may be located at a site which includes other businesses, such as retail, food service, gas stations, convenience stores, other franchised businesses or restaurants or other similar facilities. The restaurant operated may be a full size, modular retail system (“MRS”), food court, co-brand, in-line, or big-box facility and may or may not have dedicated seating.
   
3. Institutional Locations: Institutional locations include government buildings and facilities, medical facilities, airports, train and bus stations, sports facilities, factories, corporate campuses, turnpikes, limited access toll roads, theme parks, zoos, casinos and educational facilities.
   

Training Overview: Before the opening of the restaurant, franchisees must successfully complete the franchisor's Burger King Franchisee Onboarding training program. The training program is held in Miami, Florida or other locations specified by the franchisor. In-restaurant training will be held in various restaurant locations that have been authorized as training restaurants. The required new franchisee training consists of up to 20 hours of classroom or on-line training and up to 320 hours of on-the-job/in-restaurant training. It covers brand orientation, BKC Shift Certification Training, BK University Team Member Training and the foundational skills of restaurant management. In addition, ServSafe food safety training must be completed before opening by the operating partner or managing owner, the restaurant manager and, if applicable, the managing director.
The franchisor may require additional training programs for individual owner/operators, managing owners, restaurant managers or managing directors to implement current operations, standards, and procedures and to facilitate the growth and changes of the franchise. The franchisor will provide pre-opening and restaurant opening assistance as it deems appropriate. The franchisor also makes available and sometimes requires periodic workshops and seminars for managers, which include management courses and updating of operational skills. The franchisor also will provide continuing operations training programs, which the operating partner, managing director, director of operations, or managing owner (as applicable) may be required to attend.

Territory Granted: The Franchise Agreement grants the right to operate the Burger King restaurant at a specific location only. The Franchise Agreement does not grant or imply any type of area or territory, exclusive, protected or otherwise, or protected customer base. Franchisees do not receive an exclusive territory and may face competition from other franchisees, from outlets owned by the franchisor, and from other channels of distribution or competitive brands the franchisor controls.

Obligations and Restrictions: The requirements for personal participation in the operation of the business differ for the two types of ownership, as reflected in the forms of Franchise Agreements used for them. Franchisees must use the restaurant solely for the operation of a Burger King restaurant and must keep the restaurant open and in normal operation for the minimum hours and days as the franchisor specifies in the Franchise Agreement or otherwise in writing. Franchisees must offer for sale and sell at the restaurant all and only those products and services as are expressly authorized by the franchisor in the manual or otherwise in writing and only in accordance with the franchisor’s specifications and standards.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years for a freestanding restaurant; it may be less for non-traditional locations or where property control is for a shorter period. There is no right of renewal. There is an option to obtain a Successor Franchise Agreement for up to 20 years if the franchisee is in compliance with the Franchise Agreement, all other agreements with the franchisor and other requirements are met.

Financial Assistance: If the franchisor owns or leases the land or the land and building of the restaurant, it may lease or sublease the location to the franchisee. The lease does not cover equipment, inventory, supplies, or the initial franchise fee. If franchisees are purchasing one or more Burger King restaurant(s) under the Crown Your Career Program and the franchisor has agreed to finance all or a portion of the purchase price, the amount the franchisor may finance will depend on the Burger King restaurant(s) being purchased and other factors, such as the franchisee’s creditworthiness, but will not be more than any private financing the franchisee obtains for the purchase. Except as described, the franchisor does not offer any direct or indirect financing. The franchisor does not guarantee a franchisee’s notes, leases, or obligations to third parties.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$50,000	$50,000
Travel and Living Expenses While Training	$7,500	$25,000
Real Property / Occupancy Charge	$300,000	$1,500,000
Civil & Architectural Drawings / Professional Fees	$50,000	$125,000
Zoning Expenses	$5,000	$40,000
Improvements / Construction	$1,200,000	$1,800,000
Landscaping	$25,000	$60,000
Equipment	$250,600	$304,600
Decor Package	$48,000	$95,000
Signage & Drive-Thru	$150,000	$230,000
Pre-Opening Wages	$67,100	$72,500
Opening Inventory	$6,400	$12,800
Cash and Inventory Control and Order Taking System	$20,000	$25,000
Insurance	$14,000	$25,000
Working Capital / Additional Funds	$45,000	$90,000
Business Licenses, Utility Deposits, Lease Deposits and Payments	$10,000	$30,000
2-Story Interior Playground	$0	$245,000
BK® University / Support & Training Material	$600	$700
ESTIMATED TOTAL	$2,039,200	$4,730,600

Other Fees

Type of Fee	Amount
Royalty	4.5% of monthly gross sales.
Advertising	An amount not to exceed 4.5% of monthly gross sales.
Rent (where property leased from the franchisor)	Varies.
Service Desk Fee	$750-$1,200 per year per restaurant.
Late Charges	From $0-$75 per month depending upon amount outstanding, subject to maximum rate allowed by law.
Crown Your Career Late Charges	2% per annum above the promissory note interest rate.
Stamp Tax	Currently $0.35 per $100.
Transfer of Interests	$2,000 for the first restaurant and $500 for each additional restaurant. $175 additional transfer fee per restaurant for transfers occurring on the weekend and on United States federal holidays. Intercreditor Agreement (if the franchisor agrees to sign): $2,000.
Application Fee	$250 per individual applicant. Up to $5,000 per entity applicant.
Training Fees	$7,500 per trainee.
Entity or LLC Fees	Up to $5,000 per entity; plus up to $1,000 per restaurant transferred to entity or LLC.
Franchise Extension Fee	$2,500 annually.
Investment Spending (marketing)	Up to 2% of gross sales.
Sales Transfer Study	$3,000 - $8,000 per restaurant.
Sales Impact Contribution	Varies.
Gift Card Services	Set-up fee: $40 for each restaurant. Transaction Fee: Estimated 1.8% of any redeemed sales, may increase or decrease no more than one time per year.
BK LINK/Support & Training Material	$700 annually per restaurant.
Digital Services Fee	$110 per restaurant per month, plus 1% of monthly digital sales; not to exceed $4,500 per restaurant per year.
Static Menu Board Kit	$200 to $300 per month.
Miscellaneous Reimbursements, Purchases, Services	Varies (typically up to $25,000 per person depending on course, material, and travel expenses).
Follow Up Walk-Thru	$1,500
One Time Cure Fee	TRA: $10,000 MTRA: Balance of the franchise fee multiplied by the number of restaurants not developed pursuant to the schedule.
Deferred Remodel Default Payments	Royalty rate increases to 6% or 7.5% if the franchisee fails to complete the remodel to the franchisor’s specifications by the date specified in the agreement.
Audit Expenses	Cost of audit.
Indemnity	The losses and expenses the franchisor incurs.
Costs and Attorneys' Fees	Will vary under circumstances.
Background Check Fee	$145 - $15,000
Burger King Foundation	$1,000 per restaurant per year.
Product Testing, Inspections and Approval	Costs for testing new products and inspecting new suppliers, which will not exceed $30,000.
Third-Party Food Safety and Brand Standards Inspections	Costs for conducting third-party inspections of restaurant for compliance with food safety and brand standards.

The above information has been compiled from the FDD of Burger King. Year of FDD: 2026.
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