When is the Burger King franchisee's Additional Contribution due to BKC?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Should FRANCHISEE fail to make FRANCHISEE's Additional Contribution which FRANCHISEE has promised, contracted and agreed to pay herein, BKC, in its sole and absolute discretion may reduce the funds in the account established for the DMA in the like amount of FRANCHISEE's failure to fulfill its payment obligations as set forth herein.
Should FRANCHISEE fail to make FRANCHISEE's Additional Contribution which FRANCHISEE has promised, contracted and agreed to pay herein for any reason, including but not limited to the closure of a restaurant for which an Additional Contribution is owed, FRANCHISEE shall, on demand by BKC, pay in addition to FRANCHISEE's Additional Contribution, all costs and expenses, including interest and reasonable attorneys' fees, paid or incurred by BKC in enforcing 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, the franchisee's Additional Contribution is paid in arrears and is due to BKC (Burger King Company LLC) on the 10th day of each month during the term of the Investment Spending Program Agreement. BKC will calculate the payment amount and bill the franchisee. The additional contribution is associated with local marketing programs.
The Additional Contribution is tied to the Investment Spending Program Agreement, where franchisees support local marketing initiatives. The amount of the contribution will be described in Appendix A of the agreement, but in no event will the description/formula exceed 2% of the monthly gross sales of each Participating Restaurant and each Un-Owned Restaurant.
If a Burger King franchisee fails to make the Additional Contribution, BKC may reduce the funds in the account established for the DMA (Designated Marketing Area) by the amount of the failure. Additionally, if the franchisee fails to pay, they are responsible for all costs and expenses, including interest and reasonable attorneys' fees, incurred by BKC in enforcing the agreement.