Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

Considering a Burger King Franchise? Don’t Overlook These 33 Important Franchise Fees

by Franchise Chatter on August 28, 2017

in Franchise Fees, Hamburger Franchise



Franchise Chatter Membership Information

Don't Invest in a Franchise Until You Check Out This List

If you are considering a Burger King franchise, don’t get blindsided by these 33 important franchise fees (from the initial franchise fee, to the royalty fee, to 31 other fees found in Items 5 and 6 of Burger King’s 2017 FDD).

1.   Franchise Fee:  $15,000 to $50,000



  • The standard franchise fee for a 20-year Franchise Agreement term (including successor Franchise Agreements) is $50,000. However, the term of the Franchise Agreement may be shorter for non-traditional Restaurants or where property control is for a shorter period.
  • The franchise fee is prorated for terms of different duration, subject to a minimum, which is currently $15,000.
  • The franchise fee is fully earned when Burger King signs the Franchise Agreement and is not refundable.

2.  Franchise Fee Deposit:  $5,000 for TRA Deposit; $10,000 multiplied by the number of Restaurant openings committed for MTRA Deposit

  • You must sign a TRA or MTRA if you wish to specify “Target Areas” (as defined in the TRA or MTRA) to search for potential sites to develop one or more Restaurants.
  • When you sign the TRA, you pay a deposit of $5,000 (“TRA Deposit”) for the Restaurant opening committed.
  • When you sign the MTRA, you pay a deposit in an amount equal to $10,000 (“MTRA Deposit”) multiplied by the number of Restaurant openings committed.

3.  Development Fee:  subject to negotiation

  • Burger King occasionally grants area development agreements or exclusive MTRAs. The terms are subject to negotiation.
  • Generally, a development fee is paid, and there may be other financial and operational commitments, as agreed upon by the parties.

4.  Application Fee:  $250 to $5,000

  • When you apply for a franchise, you must pay an application fee of between $250 and $5,000 depending upon your proposed ownership structure.

5.  Training Fees:  usually less than $2,500

  • Each franchisee or applicant (or appropriate individual(s)) must complete certain training before being approved by Burger King to open a Restaurant. Some of these courses may require payment of a materials or course fee to Burger King or a third party.
  • The aggregate fees per trainee for the required training are usually less than $2,500.

6.  Entity Processing Fee:  $5,000

  • If you wish to adopt an ownership structure described in Burger King’s then-current Entity Guidelines, you must submit an application to Burger King for approval. At that time, you must pay a $5,000 administrative fee to reimburse Burger King for its legal and other expenses to review the documents and Distribution Plan.

7.  Royalty:  4.5% of monthly gross sales



  • Due Date:  Payable monthly on 10th day of next month.

8.  Advertising:  4% of monthly gross sales

  • Due Date:  Payable monthly on 10th day of next month.

9.  Rent (where property leased from Burger King):  varies

  • Due Date:  Base Rent – Payable in advance on the 1st day of each month; Percentage Rent – As agreed.

10.  Building Improvement Payments (certain BKLs only):  $500 per month

  • Due Date:  Payable on 1st of each month.

11.  Late Charges/Interest/Stamp Tax:  lesser of 18% per annum or maximum rate allowed by Florida law

  • Due Date:  Payable on demand.

12.  Transfer of Interests:  $2,000

  • Due Date:  Payable on sale of franchise or other transfer.

13.  Application Fee:  $250 to $5,000



  • Due Date:  Payable when you submit a franchise application.

14.  New Franchisee Training Fee:  $2,500

  • Due Date:  Payable when you sell the franchise.

15.  Entity or LLC Fees:  up to $5,000 per Entity; plus up to $1,000 per Restaurant transferred to Entity or LLC

  • Due Date:  Transfer fee is payable at the time of conversion. Application fee is payable when the application is submitted.

16.  Franchise Extension Fee:  $2,500 annually

  • Due Date:  Payable when you sign the extension agreement.

17.  Investment Spending (Marketing):  collectively agreed upon amount

  • Due Date:  Payable monthly on 10th day of next month.

18.  Sales Transfer Study:  $5,000 to $8,000

  • Due Date:  Paid to vendor or to Burger King if a reimbursement.

19.  Sales Impact Contribution:  varies

  • Due Date:  As agreed.

20.  Gift Card Services:  varies

  • Due Date:  As agreed.

21.  BK LINK Support & Training Material:  $560 annually

  • Due Date:  Payable on demand.

22.  Miscellaneous Reimbursements, Purchases, Services:  varies

  • Due Date:  As agreed.

23:  Walk-Thru:  $500

  • Due Date:  Payable on demand.

24.  One-Time Cure Fee:  varies depending upon whether you are under the TRA or the MTRA

  • Due Date:  Payable at the time you fail to meet the development schedule under the TRA or MTRA.

25.  Site Re-approval Fee:  $5,000

  • Due Date:  Payable at the time you obtain site re-approval under the TRA or MTRA.

26.  Remodel Default Payments:  monthly amount equal to $4,000 multiplied by the number of Restaurant remodels that you fail to timely complete in connection with the purchase from Burger King of those Burger King-owned Restaurants

  • Due Date:  Payable 1st of each month.

27.  Deferred Remodel Default Payments:  royalty rate increases to 6.0% if you fail to complete the remodel to Burger King’s specifications by the date specified in the addendum to the Franchise Agreement. Royalty increases to 6.0% from the remodel due date until the date Burger King confirms that the remodel meeting its specifications is complete.

  • Due Date:  Payable monthly on the 10th day of next month.

28.  Re-inspection Fee:  varies

  • Due Date:  Payable on demand.

29.  Audit Expenses:  will vary under circumstances

  • Due Date:  Within 15 days after receipt of audit report.

30.  Indemnity:  will vary under circumstances

  • Due Date:  Immediately after notice from Burger King.

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

  • Due Date:  Immediately after notice from Burger King.

32.  Background Check Fee:  $3,800 to $8,000

  • Due Date:  Payable on demand.

33.  BK McLamore Foundation Scholarship:  $1,000 per Restaurant per year

  • Due Date:  Payable on demand.

Franchise Matching Quiz



{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: