For Burger King franchises, what methods of delivering advertising or promotional messages are included in the Advertising Contribution?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
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 (as limited by Section (vi) below), 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 television, radio, outdoor and print ("Media").
Source: Item 23 — RECEIPTS (FDD pages 127–995)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, the Advertising Contribution franchisees pay is used for various methods of delivering advertising or promotional messages. These methods include television, radio, outdoor advertising, and print media.
Burger King, in its sole business judgment, decides how to allocate the Advertising Contribution between national, regional, and local expenditures. This means that while franchisees contribute a percentage of their gross sales to the advertising fund, Burger King ultimately controls how that money is spent across different advertising channels and geographic areas.
Burger King meets with the Franchisee Advisory Council at least once a year to discuss and attempt to establish the types of media to be used, referred to as the "Media Mix," and the percentage of the total annual Advertising Contribution to be spent on media, known as the "Media Spending Goal." This provides a platform for franchisee input, although the final decision rests with Burger King.