Burger King
Burger King Company LLC operates and franchises quick-service restaurants specializing in hamburgers, offering a limited menu of breakfast, lunch, and dinner products under the proprietary BURGER KING® System, which includes specific trademarks, designs, equipment, color schemes, operational standards, and procedures. The business model grants franchises to individuals or entities for developing and operating new or existing BURGER KING® Restaurants, often via Target Reservation Agreements, Multiple Target Reservation Agreements, or Development Agreements committing to multiple units. The target market encompasses the general population, with the highest patronage frequency from ages 18-54, in a highly competitive quick-service restaurant industry influenced by tastes, economics, and traffic patterns.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
4.5% royalty + 4.5% ad fund + $500/mo building improvement (certain BKLs) + $200-300/mo static menu board + $60-100/mo service desk + $50/mo BK University.
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: Sales information for 5,515 franchisee-owned and 1,097 company-owned Traditional and Non-Traditional Restaurants, open and operating for the entire 12-month period ended December 31, 2024, as disclosed in Section A.
* Calculated weighted average gross revenue using data from Page 3, combining 'Traditional Franchisee-Owned' and 'Non-Traditional Franchisee-Owned' categories: (4,774 Traditional Franchisee-Owned units × $1,658,463 average sales + 741 Non-Traditional Franchisee-Owned units × $1,321,324 average sales) / (4,774 + 741 total units) = $1,613,164.72, rounded to $1,613,165. Median gross revenue is taken from the 'Traditional Franchisee-Owned' category ($1,561,502) as it represents the largest segment of franchisee units (4,774 units out of 5,515 total franchisee units included in the calculation) and an overall consolidated median was not provided. No net income, net profit, EBITDA, or expense data was provided for profit estimation, as explicitly stated on Page 1.
Extracted Item 19 Section
How Burger King Compares to Other Fast Food Franchises
Key Insights
- Higher investment than 97% of Fast Food franchises
- #1 largest franchise system in Fast Food
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
Burger King Current | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| MCDONALD'S | $1.5M - $2.6M | $45K | N/A | 12,772 |
| AFC | $45K - $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M - $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K - $728K | $35K | 6.0% | 2,647 |
| ARBY'S | $645K - $2.5M | $38K | 4.0% | 2,316 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+36 more states
SBA Loan History
Historical SBA 7(a) loan data for Burger King franchisees (2010 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
Primarily disputes involving unpaid royalties and advertising contributions, franchise agreement terminations, ad fund mismanagement, wrongful termination claims, lease/insurance obligations, pricing restrictions, and development agreement breaches.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a Burger King franchise?
The total initial investment to open a Burger King franchise ranges from $2,064,200 to $4,730,500. This includes a franchise fee of $50,000. Ongoing royalty fees are 4.5% of gross sales.
How much revenue does a Burger King franchise make?
According to the 2025 FDD, the average gross revenue for a Burger King franchise is $1,613,165. The median revenue is $1,561,502.
How many Burger King franchise locations are there?
As of the 2025 FDD, Burger King has 19,732 franchise locations. The company has been franchising since 1954.
Can you get an SBA loan for a Burger King franchise?
Yes, SBA loans are available for Burger King franchises. Historical data shows 131 SBA 7(a) loans have been approved for Burger King franchisees, with an average loan amount of $1,010,107. The historical default rate is 2.3%.
Is Burger King a good franchise to buy?
Burger King shows several positive indicators: established brand with 19,732+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
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