When you’re considering investing in a franchise, it’s important to be confident that you’re spending your money wisely and making the best possible choices for your financial goals. To put it simply, a good franchise investment is one that’s profitable. Read on to learn more about the franchise fees and costs you can expect.
Get StartedLet’s start with some important numbers. All of our potential franchise owners are required to have a total net worth of at least $1 million and at least $500,000 in liquid assets. If the owner is going to be an entity, each individual applicant is then responsible for an additional fee.
Total net worth of at least $1 million
At least $500k in liquid assets
Initial franchise fee is $50,000, due in a lump sum when your franchise agreement is executed
Your initial franchise fee is $50,000, due in a lump sum when you sign your franchise agreement. While the total amount depends on the format you choose for your restaurant, you can expect that to include materials, equipment, certifications, professional fees, and other expenses associated with opening a business.
Throughout the life of your business, you’ll incur additional restaurant franchise fees that allow Burger King® to give you the support you need to run a thriving business. In general, you can expect to pay these on a monthly or annual basis*.
Royalties: 4.5% of gross monthly sales
Advertising: 4.0% of gross monthly sales
Building improvements: $500 per month
BK® University training and support materials: $600 annually
Digital app license fee: $0.30 per digital transaction, payable monthly
Burger King® Foundation Scholarship: $1,000 per restaurant per yearYou’ll also be responsible for a number of fixed expenses, including insurance, investment spending, recurring asset payments, and employee salaries. In some cases, franchisees lease their properties from Burger King®; in that case, you’ll also be responsible for rent.
*Please see item 5 and 6 of the FDD for any additional fees.
You can talk to current franchisees and explore our franchise disclosure document (FDD) during your due diligence.
The FDD includes all the financial information you need to determine whether franchising with Burger King® is right for your financial goals, including our business model and our place in the market. Feel free to ask the franchising team any questions you might have about the FDD or your franchise investment at any time during this process – that’s what this time is for.
To learn more about your financial opportunities as a Burger King® franchise owner, submit an Initial Inquiry Form today. Once our franchising team has reviewed your form and determined you’re a good fit, we will be in touch with all the information you need to make a smart franchise investment.
Get Started
