What is the deposit amount required for a Multi-Unit Target Restaurant Agreement (MTRA) with Burger King?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
rams listed in Item 5 for more details as to how your franchise fee may be lower than the amount listed in this Item 7. If you sign a TRA or a MTRA, you will pay a deposit of $5,000 for the TRA and a deposit of either $5,000 or $10,000 for the MTRA for each Restaurant to be developed in the Target Area, which is credited against the initial franchise fee for the Restaurant develo
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 46–54)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, if you sign a Multi-Unit Target Restaurant Agreement (MTRA), you are required to pay a deposit for each restaurant to be developed in the target area. The deposit amount is either $5,000 or $10,000 for each restaurant. The specific amount likely depends on factors determined by Burger King.
This deposit is credited against the initial franchise fee for each restaurant developed within the target area. However, this credit is contingent on the franchise fee being at least the amount of the deposit. This means that if the franchise fee is less than the deposit amount, you may not receive the full credit.
For a prospective Burger King franchisee, this means that you need to be prepared to pay a deposit of $5,000 to $10,000 per restaurant when signing a MTRA. This deposit will reduce the initial franchise fee you pay later, but only if the franchise fee is high enough to cover the deposit. It is important to clarify with Burger King the specific deposit amount required and the conditions for its application to the franchise fee.