For Burger King franchisees participating in the "Fuel the Flame" program, what happens to the advertising contribution percentage after December 31, 2026, if the average Burger King Restaurant 4-Wall EBITDA is less than $230,000.00?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
ou will not receive both reductions.
Fuel the Flame Co-Investment Agreement
If you are participating in the Ad Fund "Fuel The Flame" Program pursuant to a "Fuel the Flame" Co-Investment Agreement in the form attached hereto as Exhibit Y1, you will pay an advertising contribution of 4.5% of Gross Sales through December 31, 2026. If the average Burger King Restaurant 4-Wall EBITDA, as calculated by BKC in accordance with the terms of such agreement, is an amount equal to $230,000.00 as of December 31, 2026, your advertising contribution will remain at 4.5% through December 31, 2028, but if the amount is less than $230,000.00 as of December 31, 2026, your advertising contribution will revert to 4.0% and remain at that amount through December 31, 2028. After December 31, 2028 your advertising contribution amount will be as set forth in the then-current Franchise Disclosure Document, which amount may be up to 4.5%. Your obligation to pay the advertising contribution in accordance with the Ad Fund "Fuel the Flame" program will be set forth in a "Fuel the Flame" Advertising Contribution Addendum to your Franchise Agreement in the form attached her
Source: Item 6 — OTHER FEES (FDD pages 32–46)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, the "Fuel the Flame" program affects the advertising contribution for franchisees. If a franchisee is participating in the Ad Fund "Fuel The Flame" Program, they will pay an advertising contribution of 4.5% of Gross Sales through December 31, 2026.
If the average Burger King Restaurant 4-Wall EBITDA, as calculated by BKC, is less than $230,000.00 as of December 31, 2026, the advertising contribution will revert to 4.0% and remain at that amount through December 31, 2028.
After December 31, 2028, the advertising contribution amount will be as set forth in the then-current Franchise Disclosure Document, which amount may be up to 4.5%. New franchisees are required to participate in the "Fuel the Flame" Program.