What was the total goodwill attributed to the BK (Burger King) segment as of December 31, 2023?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | ||||||||
| Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||
| Identifiable assets subject to amortization: | |||||||||
| Franchise agreements | $ 707 | $ (369) $ | 338 | $ 727 | $ | (348) $ | 379 | ||
| Reacquired franchise rights | 374 | (22) | 352 | — | — | — | |||
| Favorable leases | 74 | (53) | 21 | 81 | (54) | 27 | |||
| Subtotal | 1,155 | (444) | 711 | 808 | (402) | 406 | |||
| Indefinite-lived intangible assets: | |||||||||
| Tim Hortons brand | $ 5,972 | $ — | $ 5,972 | $ 6,423 | $ | — | $ 6,423 | ||
| Burger King brand | 2,068 | — | 2,068 | 2,107 | — | 2,107 | |||
| Popeyes brand | 1,355 | — | 1,355 | 1,355 | — | 1,355 | |||
| Firehouse Subs brand | 816 | — | 816 | 816 | — | 816 | |||
| Subtotal | 10,211 | — | 10,211 | 10,701 | — | 10,701 | |||
| Intangible assets, net | $ 10,922 | $ 11,107 | |||||||
| Goodwill | |||||||||
| TH segment | $ 3,841 | $ 4,118 | |||||||
| BK segment | 240 | 232 | |||||||
| PLK segment | 844 | 844 | |||||||
| FHS segment | 193 | 193 | |||||||
| INTL segment | 377 | 388 | |||||||
| RH segment | 491 | — | |||||||
| Total | $ 5,986 | $ 5,775 |
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 goodwill attributed to the BK segment as of December 31, 2023, was $232. Goodwill, in this context, represents the intangible asset arising from the acquisition of a business. It's the difference between the purchase price and the fair market value of the identifiable net assets acquired. This figure reflects the value of the Burger King brand, customer relationships, and other factors that aren't separately identifiable.
For a prospective franchisee, understanding goodwill is crucial because it reflects the overall financial health and brand strength of Burger King. A higher goodwill figure can indicate a strong brand reputation and market position, which could translate to better business prospects for franchisees. However, it's important to note that goodwill is an intangible asset and its value can fluctuate based on various market conditions and the performance of the Burger King brand.
The FDD also lists goodwill for other segments, such as TH (Tim Hortons) at $4,118, PLK (Popeyes Louisiana Kitchen) at $844, FHS (Firehouse Subs) at $193, and INTL (International) at $388 as of December 31, 2023. There was no goodwill listed for the RH segment as of this date. The total goodwill across all segments was $5,775 as of December 31, 2023. These figures provide a broader context for understanding the relative value and performance of different brands under the same parent company.
It is important for potential franchisees to consider these figures in conjunction with other financial metrics and market analysis to gain a comprehensive understanding of the Burger King franchise opportunity. While goodwill can be a positive indicator, it should not be the sole factor in making a franchise investment decision. Prospective franchisees should also investigate current market trends, brand performance, and the overall financial stability of the Burger King system.