How much did Burger King's consolidated advertising expense total in 2022?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise PO because they are not dependent upon the franchise license or highly interrelated with the franchise license.
Supply Chain Cost of Sales
Cost of sales consists primarily of costs associated with the management of our Tim Hortons supply chain, including cost of goods, direct labor, depreciation, bad debt expense (recoveries) from supply chain sales and cost of products sold to retailers.
Company Restaurant Expenses
Company restaurant expenses include food, beverage and packaging costs, restaurant wages and related expenses and restaurant occupancy and other expenses.
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 company's consolidated advertising expense totaled $1,032 million in 2022. This figure represents the combined advertising expenses from both company-owned and franchised restaurants. These restaurants contribute to advertising funds managed by Burger King's subsidiaries in the United States, Canada, and certain other international markets.
The advertising funds are used to cover the production costs of advertisements when they are initially aired or displayed. All other advertising and promotional costs are expensed during the period they are incurred. It is important to note that advertising contributions from company-owned restaurants are eliminated during the consolidation process, meaning the reported figure reflects primarily the contributions from franchisees and a portion of corporate spend.
For a prospective Burger King franchisee, this information highlights the significant investment in advertising and marketing made by the brand. While franchisees contribute to these funds, they also benefit from the brand awareness and customer traffic generated by these advertising efforts. Understanding the scale of these expenses can provide insight into the brand's commitment to maintaining its market presence and supporting its franchisees through comprehensive advertising campaigns.