For Burger King, what was the total revenue from royalties in 2024, as disaggregated by segment?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
hise fees and upfront fees when a contract with a franchisee or master franchisee is modified and is accounted for as a termination of the existing contract. We classify these contract liabilities as Other liabilities, net in our consolidated balance sheets. The following table reflects the change in contract liabilities on a consolidated basis between December 31, 2023 and December 31, 2024 (in millions):
Contract Liabilities
| $ 555 |
|---|
| (60) |
| 56 |
| (22) |
| (12) |
| $ 517 |
The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) on a consolidated basis as of December 31, 2024 (in millions):
Contract liabilities expected to be recognized in
| 2025 | $ 53 |
|---|---|
| 2026 | 51 |
| 2027 | 47 |
| 2028 | 44 |
| 2029 | 41 |
| Thereafter |
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 2024 was $1,940 million, disaggregated by segment. The segments include TH (Tim Hortons), BK (Burger King), PLK (Popeyes Louisiana Kitchen), FHS (Firehouse Subs), INTL (International), RH (Restaurant Holdings), and ELIM (Eliminations).
Specifically, the royalty revenue from TH was $332 million, from BK was $484 million, from PLK was $300 million, from FHS was $71 million, and from INTL was $803 million. There was no royalty revenue from the RH segment, and an elimination of $(50) million, resulting in the total royalty revenue of $1,940 million.
For a prospective Burger King franchisee, understanding these revenue streams is crucial. While the Burger King segment itself generated $484 million in royalties, the broader picture reveals the significance of other brands under the same parent company and the impact of international operations. The eliminations likely represent accounting adjustments between segments, which don't directly affect franchisees but provide insight into the overall financial structure.