What was the total lease income for Burger King in the third year shown in the table?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
e as follows (in millions):
| | | As of December 31, | | | | | | | | |-------------------------------------------|----|--------------------|----|-------|--|--|--|------|--| | | | 2024 | | | | | | 2023 | | | Land | $ | 779 | $ | 856 | | | | | | | Buildings and improvements | | 962 | | 1,102 | | | | | | | Restaurant equipment | | 20 1,761 | | 27 1,985 | | | | | | | Accumulated depreciation and amortization | | (582) | | (656) | | | | | | | Property and equipment leased, net | $ | 1,179 | $ | 1,329 | | | | | | Our net investment in direct financing and sales-type le
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 total property revenues, which includes rental income, for the third year presented (2022) was $813 million. This figure is derived from several components, including minimum lease payments, variable lease payments, amortization of favorable and unfavorable income lease contracts, and earned income on direct financing and sales-type leases.
Specifically, in 2022, Burger King's minimum lease payments amounted to $410 million, variable lease payments totaled $395 million, and amortization of lease contracts contributed $1 million. Additionally, the earned income on direct financing and sales-type leases was $7 million. These individual components, when combined, resulted in the total property revenues of $813 million for that year.
Prospective Burger King franchisees should understand that these figures reflect the brand's overall leasing activity and income, not necessarily the specific lease terms a new franchisee might encounter. The franchisee's own lease payments will depend on the specific location, lease agreement, and other factors outlined in their individual contract, as detailed elsewhere in the FDD. Reviewing the components of rental income provides insight into the scale of Burger King's real estate operations.