Burger King Franchise Cost & Fees

SKU: f2faf26f8041 Category: Tag:

Description

BURGER KING® back every franchisee with more than 58 years of innovation, achievements, and a proven business model.With various franchise opportunities available, we can ensure we will help you make the right decisions so you can hit the ground running and grow your business, quickly and easily. And your options are limitless. As we continue to grow the BURGER KING®brand, we remain competitive by offering franchising opportunities through multi-unit acquisitions and new restaurant development.

Year Business Began: 1956

Franchising Since: 1956 Headquarters: Miami, Florida

Estimated Number of Units: 16,770

Franchise Description: Burger King Corporation (BKC) is the franchisor. Burger King franchisees operate quick-service hamburger restaurants using certain trademarks, service marks and trade names, and a recognized design, equipment system, color scheme and styles of buildings and facilities, signs, certain standards, specifications and procedures of operation, quality and consistency standards for products and services offered, and procedures for inventory control and management. BKC is a wholly-owned subsidiary of Burger King Worldwide, Inc., which is an indirect subsidiary of Restaurant Brands International.The franchisor currently has three different forms of franchise agreement, corresponding to three different types of franchise ownership: Individual (or Owner/Operator); Entity; and Corporate.

The franchise granted can be operated at one of three locations and facility types: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 and educational facilities.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.Non-Traditional Burger King Facility: A 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.

Training Overview: Before the opening of the Restaurant, franchisees must successfully complete the franchisor’s 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 franchisor may require additional training programs for individual Owner/Operators or Managing Directors to implement current operations, standards, and procedures and to facilitate the growth and changes of the franchisee. 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 will provide Pre-opening and Restaurant opening assistance as it deems appropriate. The franchisor also provides continuing operations training programs, which franchisees (as an Operating Partner, Managing Director, Director of Operations, or Managing Owner, as applicable) may be required to attend. For certain training courses, franchisees must pay a course or materials fee to the franchisor or third parties. The franchisor may make changes and revisions to the training program, locations or materials at any time.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. However, if the franchisor grants the franchisee the right to offer delivery service, it will specify a Delivery Area in which the franchisee can offer these services.Obligations and Restrictions: The requirements for personal participation in the operation of the business differ for the three types of ownership, as reflected in the forms of Franchise Agreements used for them. Franchisees must sell only those goods and services that the franchisor authorizes them to sell. Franchisees may sell approved products only at and from the Restaurant in accordance with BKC’s specifications and standards.Term of Agreement and Renewal: The length of the initial franchise term is 20 years for a freestanding restaurant, and 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 up to 20 years if the franchisee is in compliance with Franchise Agreement and with all other agreements with the franchisor.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 franchisor may from time to time provide financing for certain other types of transactions as well. Investment Tables: Estimated Initial Investment Name of Fee Low High Franchise Fee $15,000 $50,000 Travel and Living Expenses while Training $0 $25,000 Real Property/ Occupancy Charge $90,000 $850,000 Civil & Architectural Drawings / Professional Fees $10,000 $45,000 Zoning Expenses $1,000 $25,000 Improvements / Construction $25,000 $950,000 Landscaping N/A $60,000 Equipment $84,600 $294,600 Decor Package $0 $88,000 Signage & Drive-Thru $3,000 $166,000 Pre-Opening Wages $28,000 $61,000 Opening Inventory $2,500 $12,000 Cash and Inventory Control System $35,000 $60,000 Insurance $8,000 $25,000 Working Capital / Additional Funds $15,000 $90,000 Business Licenses, Utility Deposits, Lease Deposits, and Payments $6,000 $30,000 2-Story Interior Playground N/A $245,000 Estimated Total* $323,100 $3,076,600 *The estimated initial investment range covers from an indoor MRS facility restaurant type with 0-20 seats up to a ROC 2502 restaurant type with 72-80 seats and full size co-branded facility with 20/20 image (50-80 seats). Other Fees Type of Fee Amount Royalty 4.5% of monthly gross sales. Advertising 4% of monthly gross sales. Rent (where property leased from he franchisor) Varies. Building Improvement Payments (certain BKLs only) $500 per month. Late charges/ Interest/ Stamp tax Lesser of 18% per annum or maximum rate allowed by Florida law. Transfer of Interests $2,000 Application Fee $250 – $5,000 New Franchisee Training Fee $2,500 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) Collectively agreed upon amount. Sales Transfer Study $5,000 – $8,000 Per Restaurant Sales Impact Contribution Varies. Gift Card Services Varies. BK GURU / Daily Planner Subscription Fee $560 annually Digital Fee$25 per screen per month Miscellaneous Reimbursements, Purchases, Services Varies. Follow Up Walk-Thru $1,500 One Time Cure Fee Varies depending upon whether franchisee is under the TRA or the MTRA. Site Re-approval Fee $5,000 Remodel Default Payments Monthly amount equal to $4,000 multiplied by the number of Restaurant remodels that the franchisee fails to timely complete in connection with the purchase from the franchisor of those franchisor-owned Restaurants Deferred Remodel Default Payments Royalty rate increases to 6% if franchisee fails to complete the remodel to the franchisor’s specifications by the date specified in the addendum to the Franchise Agreement. Royalty increases to 6% from the remodel due date until the date the franchisor confirms that the remodel meeting specifications is complete. Audit Expenses Will vary under circumstances. Indemnity Will vary under circumstances. Costs and Attorneys’ Fees Will vary under circumstances. Background Check Fee $3,800 – $8,000 BK McLamore Foundation Scholarship $1,000 per restaurant per year

Disclaimer: The above information has been taken from the FDD of Burger King. Year of FDD: 2018NOTE: FDD pages are provided for informational purposes only. It is an overview of what is contained in the full document, which is to be given to the prospective franchisee by the franchise–and receipt of which must be formally notarized between the parties. If you are interested in getting in touch with a franchise company, please search our listings via the “Industry” pages accessible from the drop-down menu above.

 

Other Fees
Type of Fee Amount
Royalty 4.5% of monthly gross sales.
Advertising 4% of monthly gross sales.
Rent (where property leased from he franchisor) Varies.
Building Improvement Payments (certain BKLs only) $500 per month.
Late charges/ Interest/ Stamp tax Lesser of 18% per annum or maximum rate allowed by Florida law.
Transfer of Interests $2,000
Application Fee $250 – $5,000
New Franchisee Training Fee $2,500
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) Collectively agreed upon amount.
Sales Transfer Study $5,000 – $8,000 Per Restaurant
Sales Impact Contribution Varies.
Gift Card Services Varies.
BK GURU / Daily Planner Subscription Fee $560 annually
Digital Fee $25 per screen per month
Miscellaneous Reimbursements, Purchases, Services Varies.
Follow Up Walk-Thru $1,500
One Time Cure Fee Varies depending upon whether franchisee is under the TRA or the MTRA.
Site Re-approval Fee $5,000
Remodel Default Payments Monthly amount equal to $4,000 multiplied by the number of Restaurant remodels that the franchisee fails to timely complete in connection with the purchase from the franchisor of those franchisor-owned Restaurants
Deferred Remodel Default Payments Royalty rate increases to 6% if franchisee fails to complete the remodel to the franchisor’s specifications by the date specified in the addendum to the Franchise Agreement. Royalty increases to 6% from the remodel due date until the date the franchisor confirms that the remodel meeting specifications is complete.
Audit Expenses Will vary under circumstances.
Indemnity Will vary under circumstances.
Costs and Attorneys’ Fees Will vary under circumstances.
Background Check Fee $3,800 – $8,000
BK McLamore Foundation Scholarship $1,000 per restaurant per year.