Is a new Burger King franchisee required to participate in the "Fuel the Flame" Program?
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, new franchisees are required to participate in the "Fuel the Flame" Program. This program involves signing a "Fuel the Flame" Co-Investment Agreement, detailed in Exhibit Y1 of the FDD, and a "Fuel the Flame" Advertising Contribution Addendum to the Franchise Agreement, as shown in Exhibit Y2.
Under the "Fuel the Flame" program, franchisees will initially pay an advertising contribution of 4.5% of Gross Sales through December 31, 2026. After this date, the advertising contribution may change based on the average Burger King Restaurant 4-Wall EBITDA. If the EBITDA is equal to $230,000.00 or more as of December 31, 2026, the contribution will remain at 4.5% through December 31, 2028. However, if the EBITDA is less than $230,000.00, the contribution will revert to 4.0% through December 31, 2028. After December 31, 2028, the advertising contribution will be determined as set forth in the then-current Franchise Disclosure Document, which may be up to 4.5%.
This requirement means that new Burger King franchisees must budget for this advertising contribution as part of their ongoing expenses. The potential adjustment based on EBITDA introduces an element of uncertainty, as the franchisee's advertising contribution could fluctuate based on the financial performance of Burger King restaurants. Franchisees should carefully review Exhibits Y1 and Y2 to fully understand the terms and conditions of the "Fuel the Flame" program and its potential impact on their advertising expenses.