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Burger King

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.

5,518locations
Since 1954
Food & BeverageMiami, FLRestaurant Brands International Inc.www.bk.comDisclaimer

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Franchise Costs

Franchise Fee
$50,000
Initial Investment
N/A
Royalty Rate
4.50%
Brand Fund
4.50%
Fixed Monthly Fees
$306 – $643

4.5% royalty + 4.5% ad fund + $110/mo digital services + $63-$100/mo service desk + $200-$300/mo static menu board (if applicable) + $50/mo BK University + $83/mo Foundation

Financial Performance


Item 19 Financial Performance

Average Gross Revenue
$1,635,623.5

Data Based On: 5,646 franchised BURGER KING Restaurants (comprising Traditional, Non-Traditional, and Fuel Co-Branded types) open and operating for the entire 12-month period ended December 31, 2025.

* Calculated weighted average gross revenue for franchisee-owned restaurants across three categories: Traditional, Non-Traditional, and Fuel Co-Branded. Traditional Restaurants: 4,730 units at $1,692,549 average sales (Page 3-4). Non-Traditional Restaurants: 630 units at $1,381,645 average sales (Page 4). Fuel Co-Branded Restaurants: Weighted average calculated from 286 units (52 Full Size at $1,537,710; 124 Large at $1,274,481; 33 Small at $1,296,162; 77 Kiosk at $1,009,964), resulting in an average of $1,253,626.36 (Page 6-8). Overall weighted average = (4,730 * $1,692,549 + 630 * $1,381,645 + 286 * $1,253,626.36) / (4,730 + 630 + 286) = $1,635,623.50. Median gross revenue: Not calculated as separate median values were provided for different restaurant types (Traditional, Non-Traditional, and various Fuel Co-Branded categories), and an overall weighted median could not be accurately determined from the available data. Revenue quartiles: Not precisely calculable from the provided sales ranges and overall averages; specific average revenue for the top 25% or bottom 25% segments was not given. Profit metrics (gross profit, net income, net profit, EBITDA): Not available. The document explicitly states: 'THE SALES FIGURES IN THIS ITEM 19 DO NOT REFLECT THE COSTS OF SALES, OPERATING EXPENSES, OR OTHER COSTS OR EXPENSES THAT MUST BE DEDUCTED FROM THE GROSS SALES FIGURES TO OBTAIN YOUR NET INCOME OR PROFIT.' (Page 1).

Extracted Item 19 Section

Avg. Revenue: $1,635,624

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Burger King Franchise Analysis

Flame-grilled ambition ignited Burger King's franchise empire back in 1954, but the latest FDD paints a picture of a brand navigating turbulent winds in the cutthroat fast-food arena. Item 19 steps up with revenue disclosures from operating units, while a dip in total locations and elevated transfers whisper of portfolio shuffling among owners. Can this whopper of a network still deliver the ROI sizzle for newcomers, or is the grill cooling off?

Delve into Item 7 for the franchise fee of $50,000, paired with ongoing royalties at 4.5% of gross sales plus a matching 4.5% ad fund contribution—then layer on monthly extras like $110 for digital services, $63-$100 service desk, up to $300 for menu boards, $50 BK University, and $83 Foundation fees. Item 19 shines with average gross revenues hitting $1,635,624 across units, a robust figure in quick-service, though profitability hinges on operational efficiencies amid fierce competition from tastes and traffic shifts. SBA data bolsters credibility: 131 loans averaging $1,010,107 with a low 2.3% default rate, signaling lender confidence despite the system's contraction from 6,640 locations in 2023 to 5,524 in 2024—a stark -17% drop.

System vitality shows mixed signals: just 7 terminations and 33 non-renewals reflect stability, but 242 transfers suggest active resales, potentially offering entry points for buyers. Projected 39 new units indicate measured expansion, focused via development agreements. Litigation clusters around termination disputes, unpaid fees, and development breaches, underscoring the need to probe renewal risks and economic pressures. Prospective buyers should scrutinize recent FDD updates for traffic pattern impacts, validate Item 19 medians against local demographics, and track Restaurant Brands International's global strategy shifts.

Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How Burger King Compares

FranchiseInvestmentFeeRoyaltyLocations
Burger King
Current
N/A$50K4.5%5,518
MCDONALD'S$1.5M – $2.6M$45KN/A12,772
AFC$45K – $151K$6K9.5%3,572
KFC (NON-TRADITIONAL)$1.2M – $4.2M$45KN/A3,404
SONIC DRIVE-IN$1.5M – $2.5M$15K5.0%3,120
CHICK-FIL-A License Program$586K – $3.4MN/A10.0%2,795
Fast Food Average
131 franchises
$614K – $1.6M$35K6.2%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 131 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

Top States
1TX
575
2CA
482
3FL
408
4GA
267
5IL
253
6NY
230
7PA
208
8MI
189
9OH
176
10AZ
171
11NJ
157
12LA
127
13MA
117
14WA
114
15WI
112

+36 more states

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SBA Loan History


Historical SBA 7(a) loan data for Burger King franchisees (20102025)

Total Loans
131
Average Loan
$1,010,107
Total Volume
$132.3M
Default Rate
2.3%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

131 SBA loans on record

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Franchisee Contacts

2,183 franchisee contacts on file from official FDD filings.

2,183 Contacts Available

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Due Diligence


Litigation (Item 3)

Franchisee Cases8

Primarily termination disputes, unpaid royalties and advertising fee collection, franchise agreement breaches including exchange rates and development obligations, and royalty clause challenges.

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
7
Non-Renewals
33
Reacquired
13
Ceased Ops
36
Transfers
242
Sold to Franchisees
48
Projected New
39

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Frequently Asked Questions

Burger King does disclose financial performance data (Item 19) in their 2026 FDD, including average and median gross revenue figures. Get full access to see the exact revenue numbers and detailed financial breakdown.