Burger King Franchise Cost, Fees & Requirement 2024

No matter where you are in the world, you probably heard or seen Burger King. They are one of the biggest fast-food restaurants in the world.

If you consider becoming a part of Burger King’s network through franchising, you can, as they offer franchising opportunities.

This article will cover Burger King’s franchise system and how you can operate a Burger King franchise.

Burger  King Franchise

About the burger king And Its History

Burger King is an American fast-food restaurant franchise chain that operates in over 75 countries with over 19,000 locations.

They are one of the biggest franchise chains in the world, and they are named in the “100 Best Global Brands” list by Fortune.

Burger King opened in 1953 with the name “Insta-Burger King” but later changed to Burger King in 1967.

After this year, the company added more to its menu, put more effort into marketing campaigns, and started franchising. That’s how Burger King became the powerhouse it is now.


How Much Does it Cost to Open a Burger King Franchise?

Burger King Franchise Fee BreakddownMinimumMaximum
Franchise Fee$2,500$50,000
Travel and Living Expenses while Training$7,500$25,000
Real Property/ Occupancy Charge$3,500$1,200,000
Civil & Architectural Drawings / Professional Fees$0$100,000
Zoning Expenses$0$25,000
Improvements / Construction$0$1,600,000
Landscaping$0$60,000
Equipment$85,000$294,600
Decor Package$0$95,000
Signage & Drive-Thru$0$166,000
Pre-Opening Wages$27,500$67,100
Opening Inventory$5,000$12,000
Cash and Inventory Control System$35,000$110,000
Insurance$14,000$25,000
Working Capital / Additional Funds$40,000$90,000
Business Licenses, Utility Deposits, Lease Deposits, and Payments$10,000$30,000
2-Story Interior PlaygroundN/A$245,000
ESTIMATED TOTAL*$230,000$4,194,700

The average cost of opening a Burger King is between $232,300 and $4.5 million, including the $50,000 flat franchise fee.

The reason why there is a big gap is because of many factors. These include the type of Burger King franchise, location, size, equipment needed, and many others.


Burger King Franchise Requirements

Burger King requires $500,000 in liquid capital and at least $1 million of net worth in the potential franchisees.

In addition, they strongly prefer people that have a background in the QSR industry. A proven track record with administrative, financial, or development capabilities is also highly preferable.


Burger King Training and Support

There is an obligatory in-restaurant training that is held in various locations that is authorized as a training restaurant. This in-restaurant training focuses on the daily operations of the business.

There might be additional training for the managers or operators to teach standards, implementations, and procedures to facilitate growth in the location.

Burger King supports its franchisees by offering pre-opening and opening support. This includes workshops and seminars where it’s appropriate.


Burger King Terms of Agreement and Renewal

Burger King Terms Of Agreement

For the freestanding restaurant franchise type, the initial agreement is for 20 years. It could be less for non-traditional restaurants or when the property control is shorter than the agreement.

You can’t directly do a renewal, but you have the option to sign a Successor Franchise Agreement.

This agreement is also up to 20 years if the franchisor is happy with the franchisee and they have been in compliance with the previous franchise agreement.


Burger King Obligations and Restrictions

The obligation to personal participation in the operation of the franchise varies between the types of franchises.

The exact requirements are reflected in the franchise agreement. The land of the restaurant must only be used for a Burger King store.

The franchisee is obligated to keep the restaurant open and in operation as per the hours mentioned in the franchise agreement.

The franchisee is also restricted from selling any product or service that the franchisor didn’t approve beforehand.

There is also a 4.5% royalty fee that the franchisee is obligated to pay to the franchisor each month from the gross sales.


Burger King Financial Assistance

Burger King offers indirect financial assistance through a third-party capital partner.

This capital partner can lend up to $1 million to the franchisee for the purchase of the necessary equipment.

In addition, if Burger King owns the land or chooses to lease the building of the restaurant, it may lease the location to the Burger King franchise owner.

If opening a fast food franchise appeals to you, consider a Potato Corner Franchise, Popeyes Franchise, Culver’s Franchise, Chick-fil-A franchise, and In-N Out Franchise as viable options.


Burger King Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Wendy’s$50,0004%-6%$320,500-$4.6 million
McDonald’s$45,0004%$1.3 million-$2.4 million
Burger King$50,0004.5%$232,300-$4.5 million

Conclusion

Burger King is an amazing choice if you are thinking about being a part of their franchise network.

The average initial investment is between $232,300 and $4.5 million, depending on the type of franchise, location, and size. It includes the $50,000 franchise fee that you pay upfront.

On average, a Burger King store makes about $1.2 million in annual sales. You need to meet certain financial and personal qualifications, and Burger King offers training, support, and indirect financial assistance to prospective franchisees.

Overall, it’s a great opportunity to have a functioning business and succeed easily. And along with all these information, you must also know the Burger King Payment Methods.


FAQ

How much is the Burger King franchise fee?

The Burger King franchise fee is $50,000. This is a fee you pay at the beginning in a lump sum.

What is the total cost of a Burger King franchise?

The expected average total cost of a Burger King is between $232,300 and $4.5 million. It includes the franchise fee and all other startup costs.

Is Burger King a franchise?

Yes. Even though Burger King is a privately held company, they are a franchise. Anyone that meets the requirements can apply to be a franchisee.

Sources

https://franchising.bk.com

https://www.statista.com/statistics/222981/number-of-burger-king-restaurants-worldwide/

https://www.statista.com/statistics/222950/burger-king-net-income/

https://www.wendys.com/franchise-faqs

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