Burger King Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)
1. Franchise Fee: $50,000
- The actual franchise fee may vary with the length of the franchise term. Typically, a 20-year franchise term will have a $50,000 franchise fee, and a 10-year franchise term will have a $25,000 franchise fee.
2. Travel and Living Expenses While Training: $0 to $25,000
- Based on one person going through the entire mandatory training program, the high estimate assumes 12 trips made in a cost efficient manner and 45 days of moderate room and board expenses.
3. Real Property/Occupancy Charge: $400,000 to $850,000
- Costs of commercial leasing vary considerably by location and market conditions. Estimates of lease costs that might be encountered are as follows: for In-Lines, $10 to $105 per square foot, plus common area maintenance (CAM) at $2 to $60 per square foot; for Mall Food Courts, $25 to $130 per square foot, plus common area maintenance (CAM) at $10 to $70 per square foot.
- If you buy unimproved property for your freestanding facility, the cost may range from $300,000 to $1,000,000 in typical situations.
4. Civil and Architectural Drawings/Professional Fees: $20,000 to $60,000
- You will need to employ an architect or civil engineer to modify Burger King’s standard plans for your site. Prices will vary depending on the amount of revision requested by you or your municipality, county, or state.
5. Zoning Expenses: $5,000 to $25,000
- You may need to request a zoning variance or otherwise alter current zoning conditions.
6. Improvements/Construction: $900,000 to $1,200,000
- The costs of construction and improvements will vary according to the condition of the property, the facility you choose, and market conditions.
7. Landscaping: $25,000 to $60,000
- Landscaping costs will vary by site and facility type.
8. Equipment: $199,600 to $294,600
- The low range equipment costs include Burger King Restaurant equipment only. For a big-box retail Restaurant, the low range is only for equipment needed to serve a limited menu.
- You must purchase or lease all required pieces of equipment. You must purchase major restaurant equipment through the franchisor’s approved kitchen equipment suppliers, or, in some cases, directly from the approved manufacturer.
- Items you need to purchase directly from the manufacturer or from a distributor, but are not included in the costs above, are a sound system and security system.
- Local ordinances affecting smoke and odor emission may result in special types of equipment that may affect the total price.
9. Decor Package: $45,000 to $95,000
- You must purchase your decor package from franchisor-approved suppliers. Costs will vary depending upon the number of seats and the mix of tables, chairs, and booths.
- Outdoor seating is optional and if approved by the franchisor, it may increase your costs between $2,000 and $18,000, depending upon the type of Restaurant facility.
10. Signage and Drive-Thru: $66,000 to $166,000
- Signage and drive-thru costs include Burger King signage, menu boards, and Drive-Thru Package components where applicable (preview menu boards, order confirmation unit, and duplex sound system).
- The Double Drive-Thru is required for all facility types except food courts, in-lines, indoor MRS, and big-box retail facilities. A Double Drive-Thru may increase your costs between $80,000 and $120,000.
- You must install indoor and outdoor signage when applicable.
- You must purchase signs and digital menu boards from the franchisor’s approved suppliers. Costs will vary by site and facility type. Certain enhancements to signage and to the drive-thru package are optional.
- Drive-Thru costs do not apply to food courts, in-lines, indoor MRS, and big-box retail facilities.
11. Pre-Opening Wages: $57,000 to $61,000
- You will incur pre-opening labor expenses for salaried and hourly workers. The estimate provided assumes that restaurant managers will be paid for 3 months before opening, shift coordinators will be paid for 10 weeks at 40 hours per week, and other employees will be paid for 2 weeks at 15 hours per week.
12. Opening Inventory: $6,000 to $12,000
- The franchisor estimates that the amounts shown will cover opening inventory.
13. Cash, Inventory Control, and Order-Taking System: $35,000 to $110,000
- You must buy your own point-of-sale (“POS”) and inventory control systems including freestanding kiosks. Your actual costs may vary depending on the type of system you select.
14. Insurance: $14,000 to $25,000
- Insurance costs vary by insurability of each franchisee, Restaurant location, and facility type. You will probably be required to pay your entire premium for workers compensation, property and casualty insurance in advance.
15. Working Capital/Additional Funds: $45,000 to $90,000
- You will need to support ongoing expenses to the extent they are not covered by sales revenue. Unless otherwise stated, the franchisor estimates the start-up phase of your business to be 3 months.
16. Business Licenses, Utility Deposits, Lease Deposits and Payments: $10,000 to $30,000
- The franchisor estimates that you will need to provide security and other types of deposits. The amounts will vary by type and business practices.
17. 2-Story Indoor Playground: $0 to $245,000
- The 2-Story Indoor Playground is optional and can be utilized in all freestanding buildings. A 2-Story Indoor Playground may increase you costs between $135,000 and $245,000.
18. Total Estimated Initial Investment: $1,877,600 to $3,398,600
- The franchisor has relied on the experience of company-operated stores for real estate and construction costs, and its experience as a franchisor in the industry in preparing these figures.