Burger King Franchise
Cost, fees, owner earnings, closure rate and litigation for a Burger King franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Burger King discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
Item 19 not provided in excerpts. Unable to assess financial performance representations or earnings claims.
What a Burger King franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $50,000 | Item 5 — paid up front, before you open |
| Royalty | 4.5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 4.5% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 9% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $564,600 – $3,320,600 | Item 7 — franchisor's own low/high estimate |
Royalty 4.5%, advertising up to 4.5%, digital services $110/mo + 1% digital sales, multiple incentive programs available reducing initial fees/royalties.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Burger King system size and owner turnover
| Total outlets | 6,650 |
| Ceased operations | 36 |
| Terminated by franchisor | 7 |
| Transferred to new owners | 242 |
| Closure rate | 0.5% of outlets |
2025: 36 ceased operations, 242 transfers. System declining (6,650 total outlets, down 51 YoY).
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Burger King worth it? — how it compares to 164 similar franchises
| Ongoing fees | 9% of sales | steeper than 68% of quick service restaurants franchises |
| Startup cost | from $564,600 | about average (median $481,500) |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 0.5% of outlets | better than most (median 1.3%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Burger King
The franchisor's framing: Item 19 not provided in excerpts. Unable to assess financial performance representations o… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Burger King franchise — frequently asked
- How much does a Burger King franchise cost?
- The FDD lists a total initial investment of about $564,600–$3,320,600, including a $50,000 initial franchise fee.
- How much do Burger King franchise owners make?
- Burger King discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the Burger King franchise fees?
- Burger King's FDD discloses a $50,000 initial franchise fee, a 4.5% royalty on gross sales, a 4.5% advertising-fund contribution, for roughly 9% of gross sales in recurring fees before rent, labor, or debt service. Royalty 4.5%, advertising up to 4.5%, digital services $110/mo + 1% digital sales, multiple incentive programs available reducing initial fees/royalties.
- What is the Burger King franchise profit margin?
- Burger King discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the Burger King franchise failure rate?
- 2025: 36 ceased operations, 242 transfers. System declining (6,650 total outlets, down 51 YoY).
- How many Burger King locations are there?
- Burger King's FDD reports 6,650 total outlets, with 36 that ceased operations in the most recent reporting year and 242 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Burger King have complaints or lawsuits?
- Burger King discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Burger King franchise worth it?
- It depends on the numbers, not the pitch. Burger King scores F on disclosure honesty, carries about 9% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Burger King to similar franchises
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Source: MN CARDS 35599-202603-08 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Burger King or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.