Famed for their flame-grilled burgers and other fast-food delights, Burger King has been around for 70 years and shows no signs of slowing down. The company is on track to reach $60 billion in annual global sales by 2028.
Launched in 1954 and headquartered in Miami, Florida, Burger King has offered franchise opportunities since inception. Second only to McDonald’s in the global sandwich stakes, Burger King is a fast food giant, operating more than 19,000 locations in over 100 countries around the world.Â
Burger King at a glance:
Burger King offers four types of franchise, ranging from a full-scale eat-in restaurant to a simple, delivery and pickup facility. As a result, costs vary significantly – going from a very affordable $350,000 up to an eye-watering $3,076,000 – ranking Burger King start-up costs as low to very high.
The franchise fee ranges from $15,000 to $50,000. There are no franchise fee discounts for military veterans.
After opening, you are required to pay an array of ongoing fees and charges. They include:
| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | $15,000 | $50,000 |
| Training expenses | $2,500 | $25,000 |
| Real property/occupancy charge | $90,000 | $850,000 |
| Architectural drawings and related services and fees | $10,000 | $45,000 |
| Zoning expenses | $1,000 | $25,000 |
| Information system | $0 | $25,000 |
| Information system | $0 | $25,000 |
| Property improvements/construction | $0 | $1,800,000 |
| Landscaping | $0 | $60,000 |
| Equipment | $84,600 | $294,600 |
| Signage and drive-thru | $3,000 | $166,000 |
| Décor package | $0 | $88,000 |
| Pre-opening wages | $28,000 | $61,000 |
| Opening inventory and supplies | $2,500 | $12,000 |
| Cash and inventory control system | $35,000 | $60,000 |
| Insurance | $8,000 | $25,000 |
| Two-story interior playground | $0 | $245,000 |
| Business licenses, utility deposits, lease deposits/payments | $6,000 | $30,000 |
| Additional costs – first three months | $15,000 | $90,000 |
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Yes. Burger King has engaged in a massive program of restaurant upgrades over the past two years and this has driven a spike in income and net profits. Average revenues for traditional Burger King restaurants were $1,526,000 in 2023 and profitability was up by almost 50% on 2022 at $205,000 per location. This is more than three times the average Australian franchise owner income (all franchises) of $60k per year, and ranks as excellent.
Low to moderate. The failure rate for a Burger King franchise is 3% in the first year, rising to 9% by year three.
Burger King franchisees receive the right to operate a Burger King restaurant at a specific location only. The company does not grant an exclusive or protected territory. Franchisees may face competition from other Burger King restaurants that are owned or franchised by the company.
Burger King support for franchisees includes:
Good profits, a low-ish failure rate and the backing of a global brand that’s on a mission to challenge McDonald’s all point to a solid franchise opportunity. The only downsides are set-up costs that can be enormous, and the lack of any kind of territory protection. If you can accept these negatives and you like the idea of running with a brand that means business in a big way, then a Burger King franchise may be right for you.
Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new fast food business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across Australia. Just tell us what you need and leave the rest to us.
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Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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