What is the deadline for a Burger King franchisee to pay the Additional Contribution to BKC each month during the Term?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
DMA Name: Agreement Term: month(s), beginning and ending FRANCHISEE's Additional Contribution. [BKC to insert the applicable FRANCHISEE Additional Contribution description/formula. In no event will the description/formula exceed 2% of the monthly gross sales of each Participating Restaurant and each Un-Owned Restaurant.] The sum of this amount is FRANCHISEE's Additional Contribution. is due PAYMENT: BKC will calculate the payment due and bill FRANCHISEE. FRANCHISEE's Additional Contribution is paid in arrears and is due to BKC on the 10th day of each month during the Term. The first payment under the Investment Spending Program For purposes of this Agreement FRANCHISEE's Participating Restaurants (the "Participating Restaurants") are as follows: For purposes of this Agreement the Un-owned Restaurants as defined in Paragraph 10 are as follows:
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, a franchisee's Additional Contribution to BKC is due on the 10th day of each month during the Term. This payment is for the Investment Spending Program and is paid in arrears, meaning it covers the previous month's sales. BKC will calculate the amount due and bill the franchisee accordingly.
The Additional Contribution is related to local marketing programs within the franchisee's Designated Market Area (DMA). The franchisee agrees to support these programs during the term of the agreement. The amount of the Additional Contribution will be detailed in Appendix A of the Investment Spending Program Agreement, but it will not exceed 2% of the monthly gross sales of each participating restaurant and each un-owned restaurant.
It is important to note that participation in the Investment Spending Program and the obligation to make these Additional Contributions are contingent upon a certain level of participation within the DMA. Specifically, at least 66.7% of the adjusted population base of Burger King restaurants in the DMA must agree to participate in the DMA Investment Spending Agreement. BKC reserves the right to terminate the agreement if this minimum participation level is not met. Prospective franchisees should carefully review Appendix A to understand how their specific Additional Contribution will be calculated and what restaurants are included in the calculation.