Bottom line
- Total investment $348K – $3.3M including a $50K franchise fee.
- Average unit revenue of $1.4M/year (median $1.4M).
- Rated STRONG with a risk score of 40/100. SBA loan default rate of 0.0% across 370 loans (below the industry average).
- 14 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one BURGER KING unit return on the cash you put in?
Unlevered ROIC · per unit
10%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 BURGER KING units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.7M
on $8.7M purchase
Total debt
$6.9M
SBA $4.3M + senior + seller note
Overview
About
Franchisees operate quick-service restaurant locations serving flame-grilled burgers, chicken, and sides. Day-to-day operations include food preparation, inventory management, staffing, customer service, and adherence to brand standards across a mature, competitive QSR segment with thin margins.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Burger King presents moderate-to-cautious risk due to lack of financial transparency (no Item 19), unclear unit growth, opaque royalty structure, and a wide investment range that suggests inconsistent franchise economics.
Score breakdown · what drove the 40 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — impossible to assess actual profitability or ROI on $348k-$3.3M investment
- 02MED19,900 units with unknown growth trajectory — lack of transparency suggests potential stagnation or decline in mature market
- 03MINORWide investment range ($348k-$3.3M) indicates highly variable unit economics and unpredictable capital requirements
- 04MEDRoyalty rates hidden in Item 6 without summary — suggests complex or potentially unfavorable fee structure not disclosed upfront
- 05HIGHNo going concern issues reported, but absence of average revenue/net income data prevents fundamental financial viability assessment
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
BURGER KING · FDD (2026) PDF