BurgerFi Franchise
Cost, fees, owner earnings, closure rate and litigation for a BurgerFi franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
BurgerFi 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
No financial performance data disclosed whatsoever. Item 19 section exists but contains only boilerplate directing prospects to contact franchisees. Zero sales, cost, or profit figures provided. Complete omission of any earnings claim.
What a BurgerFi franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $35,000 | Item 5 — paid up front, before you open |
| Royalty | 5.5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 4% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 9.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $704,750 – $1,171,500 | Item 7 — franchisor's own low/high estimate |
4% ad fee split: 2% brand fund, 2% local. Regional funds may add more. No cap disclosed.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
BurgerFi system size and owner turnover
| Total outlets | 82 |
| Ceased operations | 28 |
| Terminated by franchisor | 28 |
| Closure rate | 34.1% of outlets |
29.78%+ of franchised outlets terminated or ceased in last 3 years; FDD itself flags high turnover risk.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is BurgerFi worth it? — how it compares to 164 similar franchises
| Ongoing fees | 9.5% of sales | steeper than 81% of quick service restaurants franchises |
| Startup cost | from $704,750 | pricier than 71% of peers |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 34.1% of outlets | worse than 98% of peers |
| Disclosed lawsuits | 4 | more litigious than 81% of peers |
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 BurgerFi
The franchisor's framing: No financial performance data disclosed whatsoever. Item 19 section exists but contains on… 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
BurgerFi franchise — frequently asked
- How much does a BurgerFi franchise cost?
- The FDD lists a total initial investment of about $704,750–$1,171,500, including a $35,000 initial franchise fee.
- How much do BurgerFi franchise owners make?
- BurgerFi 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 BurgerFi franchise fees?
- BurgerFi's FDD discloses a $35,000 initial franchise fee, a 5.5% royalty on gross sales, a 4% advertising-fund contribution, for roughly 9.5% of gross sales in recurring fees before rent, labor, or debt service. 4% ad fee split: 2% brand fund, 2% local. Regional funds may add more. No cap disclosed.
- What is the BurgerFi franchise profit margin?
- BurgerFi 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 BurgerFi franchise failure rate?
- 29.78%+ of franchised outlets terminated or ceased in last 3 years; FDD itself flags high turnover risk.
- How many BurgerFi locations are there?
- BurgerFi's FDD reports 82 total outlets, with 28 that ceased operations in the most recent reporting year. Item 20 is where system health shows up before the marketing does.
- Does BurgerFi have complaints or lawsuits?
- BurgerFi discloses 4 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a BurgerFi franchise worth it?
- It depends on the numbers, not the pitch. BurgerFi scores F on disclosure honesty, carries about 9.5% of sales in ongoing fees, and discloses 4 legal matters. Get the real owner take-home before you sign.
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Source: MN CARDS 33966-202504-12 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with BurgerFi or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.