What was the total revenue generated by Burger King from royalties in 2023?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
| Total | $ 517 |
Disaggregation of Total Revenues
As described in Note 18, Segment Reporting and Geographical Information, following the Carrols Acquisition and PLK China Acquisition, we are reporting the operations of Burger King restaurants acquired as part of the Carrols Acquisition and the operations of PLK China restaurants in a new operating and reportable segment called Restaurant Holdings ("RH") from the respective date of acquisition.
The following tables disaggregate revenue by segment (in millions):
| TH | BK | PLK | FHS | INTL | RH | ELIM (a) | Total | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Supply chain sales | $ 2,708 | $ — | $ | — | $ — | $ | — | $ — | $ — | $ 2,708 |
| Company restaurant sale |
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 revenue from royalties in 2023 was $1,920 million. This figure represents the combined royalties from various regions and segments, including TH, BK, PLK, FHS, and INTL.
For a prospective franchisee, understanding the royalty revenue is crucial as it reflects the overall health and performance of the Burger King system. It indicates how much franchisees across different regions are contributing in royalties, which are typically a percentage of gross sales. This can be an indicator of brand strength and franchisee profitability.
It's important to note that this $1,920 million figure is a consolidated number. A franchisee would need to understand the specific royalty rate they will be paying as a percentage of their gross sales, as detailed elsewhere in the FDD. Additionally, factors like location, restaurant type, and any incentive programs could influence the actual royalty payments for an individual Burger King franchise.