How Much Does a Burger King Franchise Cost?
Data from the 2026 Franchise Disclosure Document
Investment Summary
Total Investment
$348K – $3.3M
Franchise Fee
$50K
Royalty
See Item 6 for specific rates based on program and year
Ad Fund
Percentage of gross sales (varies by program)
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Burger King is $50K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Burger King franchise requires a total investment of $348K – $3.3M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $15K to $90K.
Ongoing Costs
Beyond the initial investment, Burger King franchisees pay ongoing fees. The royalty structure is: See Item 6 for specific rates based on program and year. The ad fund contribution is: Percentage of gross sales (varies by program). There is also a technology fee of $0.
Net Worth & Liquid Capital Requirements
Burger King requires working capital of $15K – $90K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Burger King's Item 19 financial performance representation:
Median gross sales: $1.4M
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Burger King?
SBA Loans Issued
275
Default Rate
7.3%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Burger King has 275 SBA-backed loans on record. The default rate is 7.3%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current Burger King franchise owners
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