By what day of each month must a Burger King franchisee pay the National Advertising Contribution?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall pay to BKC or its designee an advertising contribution in amount to be determined by BKC in its sole discretion, not to exceed an amount equal to three percent (3.0%) percent of FRANCHISEE's monthly Gross Sales, payable by the tenth (10th) day of each month based upon FRANCHISEE's Gross Sales for the preceding month (the "National Advertising Contribution"). This sum, less direct administrative expenses, will be used for (a) market research expenditures directly related to the development and evaluation of the effectiveness of advertising and sales promotions, (b) creative, production and other costs incurred in connection with the development of advertising, sales promotions and public relations both in the market area of the Franchised Restaurant, as reasonably defined from time to time by BKC, and on a national basis, and (c) various methods of delivering the advertising or promotional message, including, without limitation, television, radio, outdoor and print ("Media"). The allocation of the Advertising Contribution between national, regional and local expenditures shall be made by BKC, in its sole business judgment.
FRANCHISEE shall spend an additional one and one-half percent (1.5%) of FRANCHISEE's monthly Gross Sales, based upon FRANCHISEE's Gross Sales for the preceding month, on advertising sales promotion, public relations and other activities in support of the Franchised Restaurant (the "Local Advertising Contribution," and together with the National Advertising Contribution, the "Advertising Contribution"). At the end of each calendar year, FRANCHISEE shall certify in writing to BKC that this obligation has been satisfied and, upon request, FRANCHISEE shall submit to BKC all invoices, promotional copies and other supporting documentation to evidence the expenditure by FRANCHISEE of an amount equal to one and one-half percent (1.5%) of monthly Gross Sales. Failure to expend these funds shall constitute a material default under Section 18(A)(7) of this Agreement.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, franchisees must pay the National Advertising Contribution by the 10th day of each month. This contribution is calculated based on the franchisee's gross sales from the preceding month. The amount of the contribution is determined by Burger King, but it cannot exceed 3% of the franchisee's monthly gross sales.
The funds collected from the National Advertising Contribution are used for various advertising and marketing activities. These activities include market research, the creation and production of advertising materials, and the placement of advertising in different media channels such as television, radio, and print. Burger King has the sole discretion to decide how the advertising contribution is allocated between national, regional, and local advertising efforts.
In addition to the National Advertising Contribution, Burger King franchisees are also required to spend an additional 1.5% of their monthly gross sales on local advertising and promotional activities. Franchisees must certify in writing at the end of each calendar year that they have met this local advertising obligation and provide supporting documentation upon request. Failure to meet the local advertising spending requirement can result in a material default under the franchise agreement.