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Earnings Claims of Top Franchises Revealed

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Considering a BurgerFi Franchise? Don’t Overlook These 29 Important Franchise Fees

by Franchise Chatter on August 2, 2017

in Franchise Fees, Hamburger Franchise



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BurgerFi Restaurant Exterior Photo

If you are considering a BurgerFi franchise, don’t get blindsided by these 29 important franchise fees (from the initial franchise fee, to the royalty fee, to 27 other fees found in Items 5 and 6 of BurgerFi’s 2017 FDD).

1.  Multi-Unit Operator Agreement:  $37,500 for the first Restaurant you commit to develop, plus a reservation fee of $18,750 for each additional Restaurant you commit to develop

  • If you sign a Multi-Unit Operator Agreement for the development of multiple Restaurants, upon execution you must pay BurgerFi a franchise fee of $37,500 for the first Restaurant you commit to develop, plus a reservation fee of $18,750 for each additional Restaurant you commit to develop under the Multi-Unit Operator Agreement.
  • After each approved site is secured, you will sign a Franchise Agreement and pay the balance of the franchise fee of $18,750 for each such location.
  • The total franchise fee you will pay BurgerFi for each Restaurant is $37,500.
  • The franchise and reservation fees are fully earned by BurgerFi when received and are not refundable.

2.  Franchise Agreement:  $37,000

  • If you choose to develop and open only one Restaurant, you must execute a Franchise Agreement and pay BurgerFi a nonrefundable franchise fee of $37,500 for the right to establish a single Restaurant.
  • The franchise fee is uniformly imposed on all franchisees.

3.  Local Assistance and Construction Fee: $500 per day, plus BurgerFi’s expenses for travel, lodging, and meals



  • BurgerFi does not charge any fees or expenses for the first on-site visit. If, however, your first site is rejected and additional visits are required, you must pay BurgerFi a nonrefundable location assistance fee of $500 per day, plus reimburse its expense related to the assistance, such as travel, lodging, and meals.
  • If during the construction process more than 3 on-site visits from BurgerFi’s construction team are required, you must pay BurgerFi $500 per day, plus reimburse its expenses for travel, lodging, and meals.

4.  Pre-Opening Training:  free for 4 people; $1,000 per additional trainee

  • There is no fee for pre-opening training for 4 people. If you wish to send more than 4 people to BurgerFi’s initial training program, or if your scheduled opening date is delayed and BurgerFi requires the managers to be trained again, or if a replacement General Manager did not satisfactorily complete the program, you shall pay BurgerFi its then-current training fee for each trainee (currently $1,000 per trainee).

5.  Delayed Opening:  $1,000 for the first month’s delay; $5,000 for the second month’s delay; $10,000 for the third month’s delay; and $10,000 per month for each month thereafter

  • Your Restaurant must be opened and operating within the time period designated by BurgerFi, as set forth in the Franchise Agreement (“scheduled opening date”).
  • If your Restaurant is not opened by the scheduled opening date, except for circumstances beyond your control, you must pay BurgerFi a nonrefundable delayed opening fee as follows:  $1,000 for the first month’s delay; $5,000 for the second month’s delay; $10,000 for the third month’s delay; and $10,000 per month for each month thereafter.
  • If your Restaurant is not opened and operating within three months of the scheduled opening date, BurgerFi has the right to immediately terminate your Franchise Agreement.
  • Except as described above, there are no other purchases from or payments to BurgerFi or any affiliate of BurgerFi that you must make before your Restaurant opens.

6.  Royalty Fee:  5.5% of Gross Sales

  • Due Date:  Payable weekly on Wednesday (unless Wednesday is not a business day, then it is due on the next business day).
  • Royalty Fees are calculated based on Gross Sales for the previous week ending Sunday.
  • Amounts due will be withdrawn by EFT from your designated bank account.

7.  Contributions to the Brand Development Fund, and If Applicable, a Regional Fund:  1.5% of Gross Sales

  • Due Date:  Payable together with the Royalty Fee.

8.  Local Advertising:  2% of Gross Sales

  • Due Date:  Must be spent monthly.
  • Must be spent on advertising approved by BurgerFi and be fully documented to support the required spend.

9.  Initial Training:  first four attendees = $0; each additional attendee = $1,000

  • Due Date:  Before training.
  • Training for the first four people is included in the franchise fee. You must pay the training fee per person for any additional, new, or replacement employees to attend BurgerFi’s initial training program.
  • In addition, BurgerFi may offer an in-store manager certification program.

10.  Additional On-Site Training:  BurgerFi’s post-opening training rate, which is currently $450 per trainer, per day

  • Due Date:  When billed.
  • If BurgerFi provides additional training at your Restaurant, you must pay its daily fee for each trainer it sends to your Restaurant.

11.  Interest:  1.5% per month or the highest rate allowed by applicable law, whichever is less

  • Due Date:  On demand.
  • Interest may be charged on all overdue amounts.
  • Interest accrues from the original due date until payment is received in full.

12.  Audit Fee:  cost of audit

  • Due Date:  When billed.
  • Payable only if BurgerFi finds, after an audit, that you have understated any amount you owe to BurgerFi or Gross Sales by 2% or more.
  • You must also pay the understated amount plus interest.

13.  Prohibited Product or Service Fee:  $250 per day of use of unauthorized products or services



  • Due Date:  If incurred.
  • In addition to other remedies available to BurgerFi.

14.  Transfer Fee – Franchise Agreement:  25% of BurgerFi’s then-current initial franchise fee

  • Due Date:  Submitted with transfer application.
  • No fee charged to an individual or partnership franchisee that transfers its rights, one time only, to a corporate entity controlled by the same interest holders.

15.  Transfer Fee – Multi-Unit Operator Agreement:  25% of BurgerFi’s then-current initial franchise fee

  • Due Date:  Submitted with transfer application.
  • No fee charged to an individual or partnership franchisee that transfers its rights, one time only, to a corporate entity controlled by the same interest holders.

16.  Renewal (Franchise Agreement):  25% of BurgerFi’s then-current initial franchise fee

  • Due Date:  Six months before expiration of the Franchise Agreement.
  • As of the date of the 2017 Disclosure Document, the franchise fee is $37,500.

17.  Inspection and Testing:  $250 per product or service

  • Due Date:  With request for approval.
  • Payable if you request that BurgerFi evaluate a service, product, or supplier that it has not previously approved and that you want to use in your Restaurant.
  • Also payable if BurgerFi removes items from your Restaurant for testing and the items do not meet its specifications.

18.  Liquidated Damages:  varies

  • Due Date:  15 days after Franchise Agreement is terminated.

19.  POS System Maintenance and Support:  $5,000

  • Due Date:  Annually.
  • Payable to the approved supplier for POS system maintenance and support.

20.  Management Fee:  5% of Gross Sales plus expenses

  • Due Date:  If incurred.
  • BurgerFi may step in and manage your Restaurant in certain circumstances. It will charge a management fee if it manages your Restaurant, and you must reimburse its expenses.

21.  Costs and Attorneys’ Fees:  will vary under circumstances

  • Due Date:  On demand.
  • If you default under your Agreement, you must reimburse BurgerFi for the expenses it incurs (such as attorneys’ fees) in enforcing or terminating your agreement.

22.  Indemnification:  will vary under circumstances

  • Due Date:  On demand.
  • You must reimburse BurgerFi for the costs it incurs if it is sued or held liable for claims that arise from your operation of the Franchised Restaurant or for costs associated with defending claims that you used the trademarks in an unauthorized manner.

23.  Repair, Maintenance, and Remodeling/Redecorating:  will vary under circumstances. There is no contractual limit on the amount you may need to spend. To date, BurgerFi has not required any Restaurants to be remodeled or redecorated.

  • Due Date:  As incurred.
  • Payable to approved suppliers.
  • You must regularly clean and maintain your Restaurant and its equipment.
  • BurgerFi may require you to remodel or redecorate your Restaurant to meet BurgerFi’s then-current image for all BurgerFi Restaurants.
  • BurgerFi will not require you to remodel or redecorate your Restaurant more frequently than every five years.

24.  Insurance:  reimbursement of BurgerFi’s costs

  • Due Date:  If incurred.
  • If you do not maintain the required insurance coverages, BurgerFi has the right (but not the obligation) to obtain insurance on your behalf.

25.  On-line Ordering:  $120 per month, per store

  • Due Date:  Monthly.
  • Payable to BurgerFi’s approved supplier.

26.  ServSafe and Food Manager Certification:  the then-current market rate

  • Due Date:  As needed.
  • Each of your managers and other employees BurgerFi designates must be ServSafe and food manager certified. This fee, if any, is payable to the appropriate state agency.

27.  Restaurant Re-Inspection Fee:  $400 per visit

  • Due Date:  As needed.
  • Payable to BurgerFi or the service provider, as BurgerFi directs, if a re-inspection is required.

28.  Gift Cards/Loyalty Program:  $1,500

  • Due Date:  Annually.
  • Payable to BurgerFi’s approved supplier.

29.  Reimbursement for Monies Paid by BurgerFi on Your Behalf:  varies

  • Due Date:  On demand.
  • Covers the cost of insurance premiums and other payments you fail to make and which BurgerFi pays on your behalf.


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