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QSR 5,524 Units

Burger King Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$1,800,000 – $3,300,000

Franchise Fee

$250

Royalty Rate

4.5%

Initial Investment Range

Low: $1,800,000 High: $3,300,000

The total initial investment to open a Burger King franchise ranges from $1,800,000 to $3,300,000, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $250.

Midpoint estimate: $2,550,000

Franchise Fee

$250

One-time initial fee

The Burger King franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Burger King brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

4.5%

of gross revenue

Ad/Marketing Fund

4.0%

of gross revenue

Total Ongoing Fee Burden: 8.5% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Training Fees 7500.0 FIXED Nonrefundable materials or course fee paid before training begins. Reduced training fees or package pricing may be offered at franchisor's discretion for multiple participants in same session.
Shortfall Restaurant Initial Franchise Fee N/A VARIABLE Equal to Base Fee amount. Charged when development default occurs and is not cured within required cure period. May be applied to all Restaurants previously developed under the Development Agreement.
Royalty Fee 4.5 PCT Manually corrected — 4.5% royalty per FDD
Advertising Fee 4.0 PCT Manually corrected — 4% ad fund per FDD

What You Get

Category

QSR

System Size

5,524 units

Franchise Score

73

out of 100

Burger King is a global quick-service restaurant chain specializing in flame-grilled hamburgers and chicken products. The franchise competes on product differentiation through its unique grilling method and diverse menu offerings.

Financial Performance (Item 19)

Median Revenue

$1,561,502

per year, per location

Mean Revenue

$1,321,324

per year, per location

Profitability Estimate

Estimated Owner Profit

$179,573

per year

Profit Margin

11.5%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 14.2 years

Based on midpoint investment of $2,550,000 and estimated annual owner profit of $179,573.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

N/A

Net Unit Growth

N/A

Is a Burger King Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Burger King franchise opportunity:

Overall Score

73/100

Strong opportunity

Est. Payback Period

14.2 yrs

Longer payback

Risk Level

N/A

Insufficient data

Burger King scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $1,561,502 and a combined fee burden of 8.5% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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