What were the minimum lease payments for Burger King in 2022?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
e as follows (in millions):
| | | As of December 31, | | | | | | | | |-------------------------------------------|----|--------------------|----|-------|--|--|--|------|--| | | | 2024 | | | | | | 2023 | | | Land | $ | 779 | $ | 856 | | | | | | | Buildings and improvements | | 962 | | 1,102 | | | | | | | Restaurant equipment | | 20 1,761 | | 27 1,985 | | | | | | | Accumulated depreciation and amortization | | (582) | | (656) | | | | | | | Property and equipment leased, net | $ | 1,179 | $ | 1,329 | | | | | | Our net investment in direct financing and sales-type le
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 minimum lease payments for Burger King in 2022 were $410. This figure represents the income Burger King received from minimum lease payments related to their properties. It's important to note that this is the income received by Burger King as a lessor, not the lease payments made by franchisees.
In addition to minimum lease payments, Burger King also received variable lease payments, which amounted to $395 in 2022. These variable payments, along with a small amount from amortization of favorable and unfavorable income lease contracts, contributed to a subtotal lease income from operating leases of $806. When earned income on direct financing and sales-type leases is added, the total property revenues for Burger King in 2022 reached $813.
For a prospective franchisee, this data provides insight into Burger King's real estate operations and revenue streams related to leasing properties. While it doesn't directly indicate the lease costs a franchisee might incur, it does show the scale of Burger King's involvement in property leasing and management. Franchisees should refer to other sections of the FDD, specifically those detailing lease agreements and costs, to understand their potential financial obligations related to property leasing.