With over 12,000 locations in more than 97 countries around the world, Burger King is indeed a viable business venture. In 2019, the popular burger chain recorded a whopping $1.78bn in revenues from its more than 18,786 restaurants worldwide. Read on as we break down the Burger King franchise cost and learn how you can get started.
They were founded in Florida in 1953 by Keith Kramer and Matthew Burns, who initially named it Insta-Burger King. By 1954, the company was bought by Miami-based David Edgerton and James McLamore. They then changed the name to “Burger King,” and as they say, the rest is history.
Throughout the years, the company has undergone many ownership changes. To date, it serves more than 11 million customers every day. It is hailed as one of the most valuable quick-service brands in the world, with around $7bn in value as of 2019.
The Actual Burger King Franchise Cost
Burger King requires its franchisees to have $500,000 in liquid assets and a net worth of $1,500,000. They have a 20-year contract duration, which is renewable after that period. Franchise owners are given a grand opening event, evaluations, meetings, access to a toll-free customer support phone number.
Other ongoing fees include the 4.5% of monthly gross sales royalty fee, 4% of monthly total sales for advertising, a building improvement payment of $500, and a new franchise training fee of $2,500, among others.
Here’s a breakdown of the costs:
Estimated Initial Investment
Name of Fee
Low
High
Franchise Fee
$15,000
$50,000
Travel and Living Expenses while Training
$0
$25,000
Real Property and Occupancy Charges
$90,000
$850,000
Civil & Architectural Drawings and Professional Fees
$20,000
$60,000
Zoning Expenses
$1,000
$25,000
Improvements and Construction
$25,000
$1,200,000
Landscaping
N/A
$60,000
Equipment
$84,600
$294,600
Decor Package
$0
$95,000
Signage & Drive-Thru
$3,000
$166,000
Pre-Opening Wages
$28,000
$61,000
Opening Inventory
$2,500
$12,000
Cash and Inventory Control System
$35,000
$110,000
Insurance
$8,000
$25,000
Working Capital and Additional Funds
$15,000
$90,000
Business Licenses, Utility Deposits, Lease Deposits, and Payments
$6,000
$30,000
2-Story Interior Playground
N/A
$245,000
ESTIMATED TOTAL*
$333,100
$3,398,600
*This estimated total covers from an indoor Modular Retail System facility restaurant type with up to 20 seats, to a freestanding restaurant type with up to 80 seats. The range doesn’t include real estate costs.
How Do I Start?
After ensuring that you have adequate capital, you need to evaluate your business experience and strengths. Then, you have to assess the market availability of a Burger King franchise. Check the available markets in the location you’re interested in.
Visit the Burger King franchising webpage to see if you qualify and to get more information. You can now contact them to start the application process. The franchising team will review your online application upon its receipt. You’ll receive an email notification and will be asked to provide more details.
The company will conduct background and financial checks, after which you’ll receive your franchise approval. Note that approval will only be given to those who meet all their requirements. For other business franchising opportunities, go to FranchiseHOW.
