Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
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FDD Talk 2013: Average Sales and Certain Cost Factors for Burger King Restaurants (2013 FDD)

by Franchise Chatter on July 3, 2013

in Franchise Earnings,Hamburger Franchise



Franchise Chatter Membership Information

Highlights of Burger King’s Item 19 Financial Performance Representations (2013 FDD)

  • This Item 19 includes certain information about (a) gross sales of franchised and BKC-operated Burger King Restaurants during the 12-month period ended December 31, 2012 (“Sales Distributions”), and (b) selected cost factors for certain BKC-operated Burger King Restaurants during that period (“Cost Factors”).
  • There were 6,652 Burger King franchised Restaurants and 82 BKC-operated Burger King Restaurants open during the entire 12-month period ended December 31, 2012.

Explanatory Notes for Table I – Sales Distribution of Traditional and Non-Traditional Burger King Restaurants

  • Burger King Photo by Marr3wkThe information provided in this Sales Distribution is sales information for a total of 6,273 Restaurants treated as Traditional Restaurants for purposes of this Item. Of those Restaurants, 6,194 were franchisee-owned and 79 were BKC-owned as of December 31, 2012. Only those Restaurants with 12 months of actual sales as of December 31, 2012 are reported in this chart.
  • The information provided in this Sales Distribution is sales information for a total of 461 Restaurants treated as Non-Traditional Restaurants for purposes of this Item. Of those Restaurants, 458 were franchisee-owned and 3 were BKC-owned as of December 31, 2012. Only those Restaurants with 12 months of actual sales as of December 31, 2012 are reported in this chart.
  • Due to rounding, percentages may not equal 100%.
  • Figures do not include “Temporarily Closed” Restaurants.

Explanatory Notes for Table II – Certain Representative Cost Factors for BKC-Operated Traditional Restaurants

  • The financial information provided in this Cost Factor table is based upon an analysis of certain actual operating costs for the 12-month period beginning January 1, 2012 and ending December 31, 2012 experienced by 79 Traditional Restaurants that were open and operated by BKC for those 12 months.
  • Restaurants sold or acquired by BKC during that time period and Restaurants that were closed for any time during that period are not included in the sample.
  • These are not the only costs or expenses of operating a Burger King Restaurant. Other types of expenses that you will incur include:  rent or other occupancy expenses (including property taxes); insurance expense; legal and accounting expense; miscellaneous expenses such as operating supplies, uniforms, cleaning expense, laundry and linens, cash shortages, non-capital parts, and supplies; non-cash expenses including depreciation and amortization; income taxes; advertising expense; and royalties.
  • Labor and Fringe Benefits – This item includes wages and fringe benefits for salaried Restaurant managers and hourly workers. It does not include wages and fringe benefits for non-restaurant personnel.
  • Repair and Maintenance – The cost of repairs and maintenance of the Restaurant building and equipment can vary with the age and condition of the building. This does not include costs of improvements or remodeling that may be required from time to time.
  • Utilities – This includes telephone, broadband services, water, gas, electricity, and hauling of waste.
  • Other Expenses – This includes controllables, taxes, and licensing fees, as well as POS related items.

Table I – Sales Distribution of Traditional and Non-Traditional Burger King Restaurants

Traditional Restaurants

Above $1.5 million



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