Burger King logo

Burger King Franchise

Audited Financials
Food and BeverageEst. 1954Miami, FL
www.bk.com
Financing Available

Risk Score

Pending analysis

Investment Range

$363,400 - $4,730,500

Franchise Fee

$15,000

Min Cash Required

$15,000

Total US Locations

6,701

Business Summary

Burger King Company LLC operates quick-service restaurants that specialize in selling hamburgers. These restaurants utilize Burger King Company LLC's unique format and operating system, including the BURGER KING marks.

Corporate History

Burger King Company LLC was formed as a Florida limited liability company on February 4, 2022, and began offering Burger King franchises and operating Burger King restaurants in September 2022. The company's predecessor, BK Corporation, was originally founded in 1954 as Burger King of Miami, Inc., later incorporated as South Florida Restaurants, Inc. in 1956, and changed its name to Burger King Corporation in 1963. BK Corporation began franchising and operating Burger King restaurants in 1954. In August 2022, substantially all assets and liabilities of BK Corporation were transferred to Burger King Company LLC as part of an internal reorganization, and BK Corporation was dissolved in December 2022. Burger King Company LLC is a wholly-owned indirect subsidiary of Restaurant Brands International Limited Partnership (RBILP), which is the general partner of Restaurant Brands International Inc. (RBI). RBI also indirectly owns the Tim Hortons, Popeyes, and Firehouse Subs brands.

Financial Overview

Investment Range

$363,400 - $4,730,500

Franchise Fee (Low)

$15,000

Franchise Fee (High)

$50,000

Minimum Cash Required

$15,000

Royalty %

4.5%

Marketing %

4.5%

Equipment Costs (Low)

$119,600

Equipment Costs (High)

$2,674,600

Working Capital

$52,500

Audited Financials

Yes

Offers Financing

Yes

Financing Details

Burger King Company LLC states that it generally does not offer direct or indirect financing. However, it may offer real estate leases or subleases if it owns or leases the land and/or building of a restaurant. For the Crown Your Career Program, which allows qualified employees to purchase Burger King restaurants, the company may finance a portion of the purchase price. The amount financed depends on the specific restaurant and the franchisee's creditworthiness, but it will not exceed any private financing the franchisee obtains. Loan terms are typically 10 years or less, with interest rates fixed or variable, set at the time of funding, based on factors like loan amount, market rates, and the franchisee's credit history. Currently, the interest rate is expected to be the U.S. Prime Rate plus approximately 1% to 4% per annum. Overdue amounts incur an additional 2% interest. Loans are secured by all assets of the Burger King restaurant(s), and a personal guarantee from the franchisee (and spouse/partner) may be required. The outstanding balance becomes immediately due upon sale or transfer of any interest in the franchise or restaurant. Defaulting on the loan is also considered a default of the Franchise Agreement, which could lead to termination.

Performance Metrics

Total US Locations

6,701

Franchised Units

5,524

Corporate Units

1,177

Avg Square Footage

1,400

Franchising Since

2022

Agreement Terms

Initial Term

20 years

Renewal Term

20 years

Renewal Conditions

To renew, Burger King Company LLC franchisees must provide written notice of their intention to renew during the fourth year before their agreement expires. At the time of notice and expiration, franchisees must not be in default and must have substantially complied with all terms of their franchise agreement and other agreements with Burger King Company LLC. This includes operating the restaurant according to Burger King Company LLC's quality, cleanliness, health, and sanitation standards, fulfilling all financial obligations on time, and maintaining, improving, and remodeling the restaurant (including the building, premises, signs, and equipment) to reflect the then-current brand image. This remodel must be completed between three years and three months before the agreement expires. Franchisees also need to execute a general release of Burger King Company LLC and meet the current financial ratios that Burger King Company LLC uses to evaluate new franchisees for financial approval. Upon meeting these conditions, franchisees will sign the then-current successor franchise agreement and pay the applicable initial franchise fee, which may have different terms regarding royalty, advertising contributions, and ownership requirements.

Training & Support Program

Franchisor Assistance

Burger King Company LLC provides significant assistance to its franchisees both before and after opening. For pre-opening, Burger King Company LLC helps by designating the general geographic area for site searches (or a specific territory under a Development Agreement), approving specific restaurant locations, and providing access to standard architectural building plans and specifications. Franchisees receive mandatory pre-opening training and on-site assistance from Burger King Company LLC personnel, as deemed appropriate. They also receive a loan of the Manual of Operating Data (MOD Manual) which contains operational standards and a list of approved suppliers. For ongoing operations, Burger King Company LLC provides merchandising, marketing, and advertising research data, communicates new developments in food preparation, equipment, products, and management, and offers general ongoing support for the Burger King System. Burger King Company LLC also consults with the Franchise Advisory Council on marketing, advertising, and training policies and administers investment spending accounts for local marketing programs.

Initial Training Hours

384

Training Location

Miami, Florida and various authorized Burger King restaurant locations

Ongoing Support

Burger King Company LLC provides ongoing support to its franchisees through various channels. This includes distributing merchandising, marketing, and advertising research data to help with restaurant operations. The franchisor also communicates new developments, techniques, and improvements related to food preparation, equipment, food products, packaging, services, and restaurant management within the Burger King System. Additionally, Burger King Company LLC offers general ongoing support deemed reasonably necessary to advise franchisees on the Burger King System. The franchisor also periodically consults with the Franchise Advisory Council (representatives from an independent association of franchisees) to discuss and establish media types and advertising expenditure goals. Burger King Company LLC also manages investment spending accounts for Designated Marketing Areas (DMAs) to fund local marketing programs, using contributions from both franchised and company-owned restaurants within those DMAs. Franchisees are also required to purchase certain ongoing services for their POS systems from approved third-party vendors, such as software maintenance, hardware support, menu maintenance, and help desk services, costing typically $2,000 to $4,000 per restaurant annually.

Franchise Requirements

Ideal Candidate Profile

Burger King Company LLC seeks franchisees who can meet and maintain their operational, financial, credit, and legal criteria. For individual owner/operators, the franchisee must personally supervise the business full-time, live near the restaurant, and have no other management commitments outside of other Burger King restaurants. They also need to maintain at least 50% equity ownership. For entity owners, a pre-approved Managing Owner is required who has the authority to bind the entity, direct compliance, devote full-time efforts to day-to-day operations, live in the vicinity, and have no other restaurant business commitments. Under the Crown Your Career program, designed for qualified Burger King Company LLC employees with 1-3 years of work experience in their restaurants, the Managing Owner must own all equity interests in the franchisee entity and cannot engage in any other business activity or employment until the fifth anniversary of their first Franchise Agreement or full loan repayment. All franchisees and designated managers must successfully complete Burger King Company LLC's required training program.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

full-time

Territory Type

non-exclusive

Territory Size Requirements

Burger King does not grant franchisees an exclusive territory. The franchise agreement provides the right to operate a Burger King Restaurant at a specific location only and does not imply any protected area or customer base. Franchisees may face competition from other Burger King franchisees, company-owned outlets, or other distribution channels controlled by Burger King. For Target Reservation Agreements and Development Agreements, specific geographic areas or territories may be designated for development, but these areas do not come with exclusivity, and the document does not specify their size using metrics like radius or population.

Staffing Notes

Burger King Company LLC requires restaurants to be staffed at all times with enough trained employees, including at least one restaurant manager, to meet operational standards. This manager is responsible for direct, on-premises supervision. If a franchisee owns only one Burger King restaurant, the Restaurant Manager must also be the Operating Partner or Managing Owner. Franchisees must implement a training program for their employees that aligns with Burger King Company LLC's Team Member and Manager training program. This includes ensuring Team Members are trained using the BK® University Team Member Training Program, and anyone running a shift completes the BKC Shift Certification Program, including ServSafe® and Foundations of Shift Management.