When is the standard Burger King franchise fee of $50,000 fully earned, and is it refundable?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
ty Application (Exhibit B2). This fee is nonrefundable.
Franchise Fee
The standard franchise fee for a 20-year Franchise Agreement term (including successor Franchise Agreements) is $50,000. However, the term of the Franchise Agreement may be shorter for non-traditional Restaurants, as described in Items 1 and 7 of this disclosure document, or where property control is for a shorter period. The franchise fee is prorated for terms of different duration, subject to a minimum, which is currently $15,000. The franchise fee is fully earned when we sign the Franchise Agreement or TRA/MTRA, as discussed below and is not refundable. Unless otherwise indicated, the franchise fee is always due in full before the Restaurant opens for business, and is not refundable. (For a successor Franchise Agreement,
Source: Item 5 — INITIAL FEES (FDD pages 28–32)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, the standard franchise fee for a 20-year franchise agreement is $50,000. This fee is considered fully earned by Burger King when the Franchise Agreement or TRA/MTRA (Target Reservation Agreement/Multiple Target Reservation Agreement) is signed. The franchise fee is generally due in full before the restaurant opens for business.
Importantly, the FDD states that the franchise fee is not refundable. This means that once the agreement is signed, the $50,000 is earned by Burger King and will not be returned to the franchisee under normal circumstances.
It is common in the franchise industry for initial franchise fees to be non-refundable, as they compensate the franchisor for the costs associated with granting the franchise, including training, market analysis, and brand development. Prospective Burger King franchisees should be aware of this non-refundable policy and carefully consider their decision before signing the Franchise Agreement.