Data Verification Status: Verified
Data for Burger King was extracted directly from the 2025 Franchise Disclosure Document filed with state regulators (MN CARDS, WI DFI, or CA DFPI). The actual FDD was directly reviewed and all figures shown are sourced from the government filing. Deep extraction from 2025 FDD (as amended 01/2026) filed with WI DFI (filing #637918). 1,057 pages. 416 pages read across all 23 Items, 6 exhibits fully read (D1/D2, V, X1, Y1, O1), 9 state addenda decoded. 30 canonical families, 118 evidence-grounded fields. Scorecard: 9.1/10. Always verify current figures by requesting the most recent FDD directly from the franchisor.
Burger King
Production-quality FDD extraction — WI DFI filing 637918
Quick-service hamburger restaurants offering breakfast, lunch, and dinner under the BURGER KING marks and system. Franchisor: Burger King Company LLC (Florida LLC, formed 2022, successor to BK Corporation). Parent: RBI (also owns Tim Hortons, Popeyes, Firehouse Subs). 19,732 restaurants worldwide, 6,701 in the US. Investment: $348K–$4.7M across 6 facility types. Combined royalty + advertising floor of 9.0% of Gross Sales.
Key Metrics
Total Investment
$348,400 – $4,705,600
Initial fee: $50,000
Avg Revenue (Item 19)
$1,658,463
Gross revenue, 2025 FDD
Royalty Rate
4.5%
2025 FDD
Total Units
6,701
5,524 franchised · 1,177 company
Franchise Overview
| Parent Company | Restaurant Brands International Inc. |
| Year Founded | 1954 |
| Franchising Since | 1954 |
| Headquarters | FL |
| Category | Food & Beverage· quick-service hamburger |
| States of Operation | 50 |
| FDD Year | 2025 |
Money: What You Pay, What You Make
Investment costs, ongoing fees, and disclosed revenue — FDD Items 5, 6, 7, and 19
Investment Anatomy
Where your initial investment goes — sourced from FDD Item 7.
Where Every Revenue Dollar Goes
Approximate allocation of each dollar of gross sales — from FDD Items 6, 8, and 19. Not a profit projection.
Diligence Scores
Computed from government-filed FDD data. Each score is 0–100. Methodology is public and citation-backed.
System Health
Based on Item 20 outlet trends
Franchisor Strength
Based on Item 21 financials + Items 3-4
Contract Burden
Based on Item 17 terms + Item 12 territory
Economics
Based on Item 19 + fee burden
Confidence
Data completeness + extraction quality
Composite Grade
Economics + Diligence + Confidence
Scores are editorial calculations from cited government filings (2025 FDD). They are not investment advice. Missing economics data does not indicate poor economics — it means Item 19 revenue data is unavailable for scoring. See methodology for details.
Data Coverage
Gov-filed FDD · 2025
11/11
items populated
Item 19 — Financial Performance Representation
| Disclosed metric: Reported Gross Sales— Profit not disclosed | |
| Average Gross Sales | $1,658,463 |
| Median Gross Sales | $1,561,502 |
| Units Included | 4,774 |
| Basis | open over 1yr |
| Time Period | January 1, 2024 – December 31, 2024 |
= $1,658,463 avg revenue minus 9.0% disclosed fees (royalty 4.5% + ad fund 4.5%). Excludes labor, COGS, rent, debt service, taxes, and all other operating expenses. This is not profit.
Item 19 Data Quality
Before comparing this revenue figure to other brands, review these data-quality flags.
Gross sales
Figure represents gross sales — standard basis for cross-brand comparison.
Profit not disclosed
Item 19 reports revenue only. No expense breakdown is provided. Profit cannot be determined from this disclosure alone.
Excludes ramp-up units
Includes only units open longer than 1 year — which excludes the below-average ramp-up period. Actual first-year revenue is typically lower.
Moderate sample (4774 of 6229 units)
77% of eligible units included — adequate but check whether top performers are over-represented.
Data from 2024
Revenue covers 2024 — 2 years old. Reasonably current but worth confirming recent trends with existing franchisees.
Average and median close
Average ($1,658,463) and median ($1,561,502) are within 15% — reasonably even distribution.
Fee Structure
| Initial Franchise Fee | $50,000 |
| Total Investment Range | $348,400 – $4,705,600 |
| Royalty | 4.5% |
| Marketing / Ad Fund | 4.5% |
| Technology Fee | $4,500/mo |
| Other Ongoing Fees |
|
Operations: The Rules You Live By
Contract terms, territory, suppliers, training, and financing — FDD Items 8, 10, 11, 12, 17
Supplier Dependency — Item 8
Restrictions on where you must buy products and whether the franchisor profits from those arrangements.
Franchisor Receives Supplier Revenue
The franchisor or an affiliate receives rebates, commissions, or other compensation from required suppliers. This is a hidden cost — the effective price you pay for supplies is inflated above market rate.
“BKC received ~$227M from franchisee purchases/leases in 2024 (~16% of BKC $1.427B revenue). Supplier rebates contributed ~8.4% of consolidated ad fund revenue. Officers own publicly traded shares in General Mills, J&J, Kraft Heinz, PepsiCo.”
| Required Purchases | Yes — restricted |
| Approved Supplier List | Yes |
| Alternative Supplier Allowed | Yes (with approval) |
| Supplier Lock-in Score | 8/10High restriction |
Mandatory purchase categories: food ingredients, packaging, equipment, technology, digital services, network services, gift card, quality assurance
Franchisor Financing — Item 10
Financing offered or facilitated by the franchisor — including direct loans, third-party referrals, and key risk clauses.
Direct Financing Available
Franchisor offers loans directly — review all terms and risk clauses carefully before accepting.
Interest Rate
8%
APR
Risk Clauses
Cross-Default Clause
Defaulting on your franchise agreement automatically triggers a default on this loan.
Personal Guarantee Required
You are personally liable for repayment — not just the business entity.
Collateral Required
Assets must be pledged to secure this loan.
Source: FDD Item 10 (government-filed disclosure document).Extraction confidence: high.
Territory & Encroachment Risk — Item 12
Critical Encroachment Risk
NO exclusive territory — encroachment risk exists; franchisor may operate competing channels in your market; franchisor reserves online/ecommerce sales; no defined territory type.
✗ No
Exclusive Terr.
△ Yes
Franchisor Competes
△ Yes
Online Reserved
none
territory type
Source: FDD Item 12 (Territory) · Encroachment risk score is editorial analysis based on disclosed terms
Supplier Dependence — Item 8
Required purchases, approved suppliers & lock-in analysis
Critical Supplier Dependence
Alternative suppliers may be approved with permission; mandatory purchases required from approved sources; defined approved supplier list exists; franchisor or affiliate receives revenue from supplier arrangements; mandatory categories: food_ingredients, packaging, equipment….
Source: FDD Item 8 (Restrictions on Sources of Products and Services) · Lock-in score is editorial analysis
Management Quality — Item 2 (Business Experience)
Strong Management Signal
Leadership has prior franchise system experience; long-tenured executives (5+ years); recent leadership changes detected; 13 senior roles identified.
13
Senior Execs
✓ Yes
Franchise Exp.
✓ Yes
Stable Leadership
△ Yes
Recent Changes
Source: FDD Item 2 (Business Experience) · Extraction confidence: high
Franchisor Support — Item 11
Training program, field support & ongoing resources
Strong Franchisor Support
Ongoing training program; field support team; technology/POS system provided.
Source: FDD Item 11
Contract Terms at a Glance
Key franchise agreement provisions — from FDD Item 17. These define your legal relationship.
System Health: Is It Growing or Shrinking?
Unit openings, closures, transfers, and geographic spread — FDD Item 20
Unit Economics — Item 20 (Outlets & Franchisee Information)
Units Opened
+63
Units Closed
-69
Units Transferred
254
| Net Growth | -77 units |
| Turnover Rate | 1% |
System Composition
Ownership split and 3-year system trajectory — from FDD Item 20.
3-Year System Trajectory
Outlet Churn Anatomy — Item 20
Exit-type breakdown for the 2025 FDD reporting period. Source: government-filed FDD.
contracting System
System is shrinking — net -77 units. Closures exceed openings. Verify whether this is temporary or structural.
Opened
+63
Exited
-1179
Net
-77
| Exit Type | Count | % |
|---|---|---|
Non-renewals (not offered renewal) Franchisor declined to renew. Similar signal to termination — unit was not retained. | 49 | 4% |
Reacquisitions (franchisor bought back) Franchisor bought the unit. May indicate strategic consolidation or failing unit rescue. | 1061 | 90% |
Voluntary closures (franchisee-initiated) Franchisee chose to close — often because unit was uneconomical. A high count is concerning. | 69 | 6% |
Transfers (franchisee-to-franchisee) Units changed hands but remained in the system. High transfers can indicate a healthy resale market. | 254 | — |
4% of exits were franchisor-forced (terminations + non-renewals). Industry benchmark: under 20% is normal.
Franchisor Strength: Can They Support You?
Financial health, litigation history, and audited statements — FDD Items 3, 4, 21
Litigation Summary — Item 3
Active Lawsuits
10
Trend
Lawsuit Types
2 high-impact matters: Arrington no-hire class action (Sherman Act, mediation by Apr 2026) and Plymouth County Carrols acquisition fairness (trial Feb 2027). 1 franchisor-initiated enforcement. 8 concluded matters including Swiss Cartel Act finding and Spanish wrongful termination. BKC directly named in only 2 pending matters.
Franchisor Financial Strength — Item 21
Extracted from audited financial statements filed with the FDD.
Auditor
KPMG LLP
✓ Unqualified (clean) opinion
Financial Strength
strong
Derived from audited balance sheet
| Franchisor Financials (most recent audited year) | |
|---|---|
| Revenue | $8,406,000,000 |
| Total Assets | $24,632,000,000 |
| Total Liabilities | $19,789,000,000 |
| Equity | $4,843,000,000 |
| Net Income | $1,445,000,000 |
| Cash & Equivalents | $1,334,000,000 |
Franchisor P&L Snapshot
Visual summary of the franchisor's audited financials — from FDD Item 21 / Exhibit A.
Peer Benchmarks
Ranked within food-beverage franchises at a over $500K investment tier. All data from government-filed FDDs.
Burger King ranks in the top 25% of peers for annual unit turnover
Percentile rank vs. comparable franchises in the same category and investment tier. For revenue and growth: higher percentile = better. For fees and investment: lower percentile = better (bar shows relative advantage).
Filing Year Changes
Year-over-year comparison across multiple FDD filings. Source: government-filed disclosures.
Net Unit Growth — Item 20 (Multi-Year)
Green = system grew · Red = system shrank · Each bar = one filing year
Most recent
-77
net units 2024
Trends & Change Signals
Multi-factor trend detection across revenue, unit count, financials, and litigation. Includes year-over-year comparison.
Overall Trend: critical
One or more critical deterioration signals detected. Review carefully before proceeding.
Unit Growth Trajectory
Growth improved by 187 units
Net -77 units (2024)
vs. Net -264 units (2023)
Unit Turnover Rate
Below average — healthy retention
1% annual turnover
Litigation Trend
Lawsuit count growing — verify nature of disputes
10 active lawsuits, trend: increasing
Buyer Prep: What to Watch For
Key risk areas, questions for existing franchisees, and community insights
Key Risk Areas
6 from FDDReclaim the Flame 2 requires Sizzle Image remodels by BKC-set deadlines (2026-2030). Missed deadlines trigger +3.0% royalty surcharge on all Gross Sales. Cross-default cascades to all development agreements. D/F operators get $0 in contributions but still face full penalty.
Single-location rights only. BKC reserves all alternative distribution channels (grocery, internet, convenience). Affiliate brands (TH, Popeyes, FHS) may operate in same markets. BKC not responsible for resolving inter-brand conflicts.
4.5% royalty + 4.5% advertising (as of 1/1/2025) = 9.0% mandatory floor. Additional: up to 2.0% Investment Spending, $4,500/yr Digital Services, $700/yr BK University, $1,000/yr BK Foundation. For BKL locations, rent adds 8.5-10% of Gross Sales.
Franchised units declined from 7,053 (2022) to 5,524 (2024). 2024 dominated by Carrols acquisition (1,023 units reacquired). Excluding Carrols, net system contraction is ~77 units. 49 non-renewals, 69 ceased operations in 2024.
FA Section 5.D: BKC owns all data from POS Systems, Additional Ordering Systems, and Additional Digital Systems. All net profits from selling this data to third parties are BKC's sole property. Digital Services Agreement provides AS-IS service with zero SLAs and 6-month liability cap.
Sherman Act class action alleging BK's standard FA no-hire clause is illegal restraint. Court-ordered mediation by Apr 3, 2026. Separately, Plymouth County v. RBI (Carrols acquisition fairness) heading to trial Feb 2027.
Franchisee Interview Prep
Questions to ask current franchisees — generated from red flags, Item 20 exit data, and contract terms in the 2025 FDD. Prioritized: critical questions first.
69 units closed in the most recent FDD period. Ask franchisees: what actually drove those closures — was it market conditions, operations, or franchisor decisions?
Look for: Franchisees who left voluntarily vs. those terminated. Any pattern by region, years in system, or franchisee profile.
Cure period is only 5 days. Ask: have you ever received a default notice? How did the franchisor handle it — were they reasonable?
Look for: A short cure period combined with aggressive enforcement is a serious risk. Look for franchisees who feel supported vs. managed by threat.
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
Item 2 shows recent leadership changes. Ask current franchisees: has the change in leadership affected support quality, speed of decisions, or the culture of the system?
Look for: Whether the new leadership has franchise operations experience. Disruption in field support after leadership transitions is common.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Knowing everything you know now, would you sign this franchise agreement again? What would you negotiate differently?
Look for: This is the single highest-signal question. Listen for hesitation. Franchisees rarely criticize their decision publicly; even mild reservations are meaningful.
Geographic Concentration
State distribution analysis from FDD Item 20 (Table No. 3).Coverage estimate based on aggregate state count — per-state breakdown pending full extraction.
Well Distributed
Present in 50+ states — strong geographic diversification reduces single-state risk.
50
States Active
national
Coverage Type
0.02
HHI (concentration)
2%
Est. top-state share
ℹ Per-state breakdown will be available after Item 20 state-table extraction completes for this brand.
Community
Not FDD dataAnonymous Owner Submissions
No owner submissions yet for Burger King. Be the first — your data helps future buyers.
Buyer Memo
One-page printable summary: investment, revenue, flags, and questions to ask.
View Memo →Full Diligence Memo
Item 19, system health, red flags, contract terms — cited to the filed FDD.
Full Analysis →Lender Readiness Pack
SBA-ready summary: investment ranges, scenario economics, franchisor financials.
View Lender Pack →Get the Full Report
Standard
$29
- Full score breakdown & analysis
- Red flag deep dive
- FDD summary (Items 1-23)
Premium
$79
- Everything in Standard
- Item 19 financial modeling
- Competitor comparison
- Community data overlay
Executive
$199
- Everything in Premium
- 10-year pro forma model
- Litigation deep dive
- Territory analysis & map
Data sourced from the 2025 FDD filed with a state franchise regulator (FL DFI/CARDS filing). Fields not extractable from the PDF are shown as not available. Last updated 2026-04-05.
Deep extraction from 2025 FDD (as amended 01/2026) filed with WI DFI (filing #637918). 1,057 pages. 416 pages read across all 23 Items, 6 exhibits fully read (D1/D2, V, X1, Y1, O1), 9 state addenda decoded. 30 canonical families, 118 evidence-grounded fields. Scorecard: 9.1/10.
Franchisel is independent and does not accept payments from franchisors. Scores reflect editorial analysis, not franchisor endorsement.