Burger King Franchise FDD, Profits & Costs (2025)
Burger King started its journey in 1954 and began franchising that same year. The brand quickly built a global presence, driven by its commitment to quality and innovation.
Best known for its flame-grilled burgers, especially the iconic Whopper, Burger King has expanded its menu to offer a variety of options, from crispy chicken fries to plant-based alternatives, catering to different tastes and dietary needs.
Headquartered in Miami, Florida, Burger King has been a franchise-driven brand since its early years, with significant global growth.
The Burger King franchise model emphasizes collaboration and support, designed to nurture a network of dedicated franchisees. Ideal franchisees are individuals or businesses with a passion for delivering top-tier quick-service dining experiences and the resources to run a successful operation.
Burger King Financial Plan
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Initial Investment
How much does it cost to start a Burger King franchise? It costs on average between $247,000 – $4,671,000 to start a Burger King franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property. Indeed, Burger King offers 7 types of franchises:
| Type of Restaurant | Initial Investment Range |
|---|---|
| Delivery Restaurant | $247,300 to $523,000 |
| Big-Box | $564,000 to $968,400 |
| Mall Food Court | $605,120 to $1,116,000 |
| Indoor MRS | $345,800 to $745,400 |
| Co-Brand | $831,600 to $1,577,100 |
| In-Line / End Cap | $730,200 to $1,899,100 |
| Freestanding | $2,010,600 to $4,670,900 |
We are summarizing below the main costs associated with opening a Traditional Freestanding Burger King franchised restaurant. For more information on costs required to start an Burger King franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount (Freestanding) |
|---|---|
| Franchise Fee | $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 |
Average Revenue (AUV)
How much revenue can you make with a Burger King franchise? A Burger King franchised restaurant makes on average $1,526,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,548,000 yearly revenue for similar burger franchises. Below are 10 Burger King competitors as a comparison:
Burger King Financial Plan
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Burger King Franchise Disclosure Document
Frequently Asked Questions
How many Burger King locations are there?
As of 2023, Burger King operates over 19,000 locations globally. The vast majority of these locations, 99.7%, are franchised, meaning they are owned and operated by independent franchisees. This amounts to more than 18,700 franchised locations.
The remaining stores, approximately 300 company-owned locations, are managed directly by the corporation, but Burger King has moved towards an almost entirely franchised model since 2013.
This franchise-heavy structure has allowed Burger King to expand across more than 100 countries, making it one of the largest fast-food chains in the world.
What is the total investment required to open a Burger King franchise?
The total investment required to open a Burger King franchise ranges from $247,000 to $4,671,000.
What are the ongoing fees for a Burger King franchise?
Burger King franchisees are required to pay a royalty fee of 4.5% of gross sales. This fee covers ongoing support and the use of the Burger King brand. Additionally, franchisees must contribute 4% of gross sales towards a marketing fee, which funds national and regional advertising campaigns designed to boost brand visibility.
These fees ensure that franchisees receive both operational support and the benefits of comprehensive marketing efforts, which are essential for the continued success and growth of the franchise. Other potential ongoing expenses include property leases and local advertising costs.
What are the financial requirements to become a Burger King franchisee?
To become a Burger King franchisee, you must meet specific financial requirements. These include a minimum net worth of $3 million and liquid assets of at least $1 million.
These financial thresholds ensure that franchisees have the necessary capital to cover the costs of starting and operating a Burger King restaurant, which can include real estate, equipment, and other initial expenses.
How much can a Burger King franchise owner expect to earn?
The average gross sales for a Burger King franchise are approximately $1.53 million per location. Assuming a 15% operating profit margin, $1.53 million yearly revenue can result in $145,500 EBITDA annually.
Who owns Burger King?
Burger King is owned by Restaurant Brands International (RBI), a Canadian-American multinational company. RBI was formed in 2014 after a merger between Burger King and Tim Hortons, a Canadian coffee and fast-food chain.
The merger was led by 3G Capital, a Brazilian investment firm, which continues to hold a significant stake in RBI. In addition to Burger King and Tim Hortons, RBI also owns Popeyes and Firehouse Subs, making it a major player in the global fast-food industry.
Disclaimer
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