Burger King Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$50,000
Investment required
$247,000 - $4,671,000
Royalty fee
4.50%

Burger King: A Pioneer in Fast Food Excellence

Burger King, founded in 1954, has cemented its position as a leader in the fast food sector, with the Whopper® being one of its most renowned offerings. The brand began franchising in 1959 and is based in Miami, Florida. It operates under the Burger King Corporation, a wholly-owned subsidiary of Restaurant Brands International Limited Partnership.

In 1978, Burger King underwent a significant restructuring under the leadership of Donald N. Smith, a former McDonald's executive. This restructuring aimed to standardize operations and maintain quality control, implementing restrictions on franchise ownership to ensure proximity to restaurants and prevent large franchises from dominating the brand.

Burger King offers various franchising opportunities, including traditional standalone restaurants, non-traditional outlets within other businesses, institutional locations, and delivery-only services. A standard franchise agreement for a standalone restaurant typically spans 20 years, with renewal contingent on compliance with the franchisor's standards and agreements.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Burger King offers various types of franchises:

Burger King Type Initial Investment
Freestanding $2,010,600 to $4,670,900
Co-Brand $831,600 to $1,577,100
In-Line / End Cap $730,200 to $1,899,100
Mall Food Court $605,120 to $1,116,000
Indoor MRS $345,800 to $745,400
Big-Box $564,000 to $968,400
Delivery Restaurant $247,300 to $523,000

We are summarizing below the main costs associated with opening a Burger King Freestanding Traditional Facility franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Burger King Freestanding Traditional Facility

Type of Expenditure Freestanding Estimated Range (Low) Freestanding Estimated Range (High)
Franchise Fee $50,000 $50,000
Training and Travel and Living Expenses $7,500 $25,000
Real Property / Occupancy Charge $300,000 $1,500,000
Civil & Architectural Drawings / Professional Fees $40,000 $100,000
Zoning Expenses $5,000 $25,000
Improvements / Construction $1,000,000 $1,800,000
Landscaping $25,000 $60,000
Equipment $250,600 $304,600
Décor Package $45,000 $95,000
Signage & Drive Thru $110,000 $186,000
Pre-Opening Wages $67,100 $72,500
Opening Inventory $6,400 $12,800
Cash, Inventory Control and Order Taking System $35,000 $50,000
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
Total Estimated Initial Investment $2,010,600 $4,670,900

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Number of units

2024
Franchised units

7,053

6,992

6,640

Company-owned units

51

50

138

Total units

7,104

7,042

6,778

Franchise Disclosure Document

Training 

Burger King offers a comprehensive training program to equip its franchisees with the necessary skills for successful franchise operation.

Conducted in Miami, Florida, or other designated locations, the program includes hands-on experience at authorized Training Restaurants.

The training encompasses operational procedures, the use of essential equipment and software, and adherence to Burger King's operational standards.

The cost for the training program is $7,500 for the first participant and $3,000 for each additional participant. Franchisees are responsible for covering all associated expenses, including travel, accommodation, wages, and insurance.

Territory Protection

Franchisees can open multiple Burger King Restaurants within a designated area, known as a "Territory," under an Area Development Agreement. Within this Territory, they are required to develop Franchised Restaurants.

However, the Territory does not grant exclusivity. Franchisees do not have any express or implied territorial rights to develop Burger King restaurants in any area. Burger King Corporation (BKC) retains the unrestricted right to directly or indirectly develop, establish, and/or approve other franchisees to develop Burger King restaurants both within and outside of the designated Territory.

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