5/8/11

How to Open a Burger King Franchise

A Burger King franchise represents a potentially profitable business opportunity. Founded in 1954, Burger King now has more than 11,300 outlets in 69 countries, according to Best Franchise USA. The majority of them are franchises. In order to acquire a franchise, a prospective operator must meet stringent financial requirements and undergo training. The company is most interested in multi-unit operators, as opposed to single locations.



As of November 2010, the fee per restaurant is $50,000 for a 20-year franchise agreement. Payment is due before the restaurant opens. You will also pay a monthly royalty fee of 4.5 percent of gross sales, as well as a monthly advertising contribution of 4 percent of gross sales.
    • 1

      Complete a prequalification questionnaire, available at the company's website, to see if you qualify to proceed further in the application process.

    • 2

      Meet minimum financial requirements. Burger King requires a net worth of at least $1.5 million and $500,000 in liquid assets in order to acquire a single restaurant, according to its website. Depending on location and other circumstances, the requirements for a particular franchise can be considerably higher.

    • 3

      File a Franchise Disclosure Document with the company. It can be completed electronically at Burger King's website or as a paper document. For a copy of the paper document, call 305-378-3588.

    • 4

      Acquire startup costs. On average, startup costs will range from $1.2 million to $2.2 million, according to the company. Factors--such as geographic location, site availability, building size and building code requirements--will effect the total cost. Detailed information regarding startup and operating costs can be found in Burger King's Franchise Disclosure Document.

    • 5

      Complete franchisee training. Depending on your restaurant and business experience, you will have to complete as much as 84 days of classroom and on-the-job training. It includes a mandatory 80 hours of new franchisee orientation, as well as up to seven weeks of in-restaurant training. In-restaurant training is conducted in a Burger King-operated store as convenient to you as possible.

    • 6

      Buy an existing Burger King location. Most new franchisees enter the business by doing that, according to the company. You will make a deal directly with the current owner. Pricing is established by a multiple of the restaurant's annual cash flow and profitability. Factors--such as the condition of the facility, the number of years remaining on the franchise agreement and the availability of financing--will impact the price you will pay.

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