For a non-traditional Burger King facility, what is the estimated range for real property/occupancy charges, and how many months of rent does this projection cover?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | | | a. These payments are non-refundable.
YOUR ESTIMATED INITIAL INVESTMENT
Non-Traditional Facility
| Type of Expenditure a | Mall Food Court Estimated Range | Indoor MRS Estimated Range | Method of Payment | When Due | To Whom Payment Is To Be Made | ||
|---|---|---|---|---|---|---|---|
| Low | High | Low | High | ||||
| Franchise Fee 1 | $15,000 | $50,000 | $15,000 | $50,000 | lump sum | execution | BKC |
| Trainingand Travel and | $7,500 | $25,000 | $7,500 | $25,000 | as | as incurred | vendor |
| Living Expenses 2 | arranged | ||||||
| Real Property / Occupancy | $80,000 | $125,000 | $90,000 | $150,000 | as | as incurred | lessor |
| Charge 3 | arranged | ||||||
| Civil & Architectural Drawings / Professional Fees 4 | $30,000 | $45,000 | $30,000 | $45,000 | as arranged | as incurred | vendor |
| Zoning Expen |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 46–54)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, the estimated initial investment for real property/occupancy charges varies depending on the type of non-traditional facility. For a Mall Food Court, the estimated range is $80,000 to $125,000. For an Indoor MRS (Modular Retail System), the estimated range is $90,000 to $150,000. These projections cover three months of rent.
It is important to note that rent costs can vary significantly, ranging from $35 to $200 per square foot, including common area maintenance (CAM). Burger King estimates that a non-traditional facility will occupy between 300 and 2,500 square feet. This wide range highlights the importance of carefully evaluating potential locations and negotiating lease terms.
Prospective franchisees should conduct thorough market research to understand local rental rates and CAM charges. They should also consult with experienced real estate professionals to assess the suitability of potential sites and negotiate favorable lease agreements. These figures are estimates, and actual costs may vary based on specific circumstances and market conditions.