Burger King franchise

Hassle-free business loans to start your Burger King franchise.

Business loans for franchises​

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.

Burger King business details

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. 

Burger King at a glance:

  • US stores: More than 500
  • Required Investor net worth: at least £1,000,000
  • Required investor liquid cash: £500,000 min.
  • Min. investment: £250,000
  • Max. investment: £800,000
  • Standard franchise term: 20 years

Can I start a Burger King franchise?

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 £250,000 up to £800,000 – ranking Burger King start-up costs as low to high.

The franchise fee ranges from £2,500 to £50,000. There are no franchise fee discounts for military veterans.

Burger King franchise options:

  • Traditional Burger King Restaurant Facility: A self-contained, full size Burger King restaurant which is located and operated on a site as a freestanding building or within another building structure such as a shopping mall. 
  • Non-Traditional Burger King Facility: A non-traditional Burger King restaurant may be located at a site which includes other businesses, such as retail, food service, gas stations, convenience stores, other franchised businesses or restaurants or other similar facilities. 
  • Institutional Locations: Includes government buildings and facilities, medical facilities, airports, train and bus stations, sports facilities, factories, corporate campuses, turnpikes, limited access toll roads, theme parks, zoos and educational facilities.
  • Delivery: Operated at a food preparation and cooking facility located within a building or other enclosed structure, which may also include other food service concepts or restaurants. This facility will have a limited menu and only provides meals for delivery or pickup.

After opening, you are required to pay an array of ongoing fees and charges. They include:

  • Royalty fee: 4.5% of monthly gross sales
  • Advertising fee: 4% monthly gross sales
  • Service desk fee: £750 to £1,000 per year per location
  • Late payments charge: 18% per month or maximum rate allowed by law
  • Stamp tax: £0.35 per £100
  • Digital sales fee: £0.30 per sale completed on the BK app
  • Transfer fee: £2,000 for the first restaurant, £1,500 for each additional restaurant
  • Application fee: £250 per individual application, up to £5,000 per entity application
  • Training fees: £7,500 for first person, then £3,000 each additional person
  • BK LINK/support and training materials: £600 per year per location
  • Static menu board kit: £200 to £300 per month
  • Background check fee: £395 to £15,000
  • Burger King Foundation Scholarship: £1,000 per location per year

Estimated key costs to open a Burger King franchise (full range of options):

Key Costs GuideLowHigh
Franchise fee£2,500£50,000
Training expenses£7,500£25,000
Real property/occupancy charge£3,500£1,500,000
Architectural drawings and related services and fees£15,000£100,000
Zoning expenses£37,000£320,000
Information system£0£25,000
Information system£0£25,000
Property improvements/construction £0£1,800,000
Landscaping£0£60,000
Equipment£85,000£340,600
Signage and drive-thru£0£186,000
Décor package£0£95,000
Pre-opening wages£30,000£72,000
Opening inventory and supplies£5,400£12,800
Cash and inventory control system£35,000£50,000
Insurance£14,000£25,000
Two-story interior playground£0£245,000
Business licenses, utility deposits, lease deposits/payments£10,000£30,000
Additional costs – first three months£40,000£90,000

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Are Burger King franchises profitable?

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 UK franchise owner income (all franchises) of £60k per year, and ranks as excellent.

What is the failure rate for a Burger King franchise?

Low to moderate. The failure rate for a Burger King franchise is 3% in the first year, rising to 9% by year three.

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What are the franchise territory policies for Burger King?

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.

What franchise resources does Burger King offer?

Burger King support for franchisees includes:

  • Training: Burger King requires that prior to opening their restaurant, franchisees must successfully complete the initial franchisee training program. Burger King may also require additional training programs for individual owner/operators or managing directors and provide pre-opening and restaurant opening assistance as it deems is necessary. Burger King makes available and sometimes requires periodic workshops and seminars for managers, which include management courses and updating of operational skills. 
  • Marketing support: Burger King offers significant promotional and other marketing support for their franchisees.
  • Third-party financing: Burger King provides no financial support for investors seeking franchise funding. However, you may be able to obtain economical and flexible funding solutions from the many independent funders who provide business loans to franchise operators.

Why should you start a Burger King franchise?

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.

Secure franchise funding with Swoop

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 the UK. Just tell us what you need and leave the rest to us.

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Testimonials

Written by

Chris Godfrey

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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