Under what conditions might a Burger King franchisee qualify for reduced royalty rates and advertising contribution rates for a Sizzle Image Restaurant?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain Franchisees that have signed either a TRA, an MTRA, or a Development Agreement and that are approved by us, in our sole discretion, to develop one of the first 100 Restaurants, as determined by us in our sole discretion, in the Sizzle Image may qualify for a reduced initial franchise fee (as described in Item 5) and reduced royalty rates and advertising contribution rates at the approved Restaurant developed under the TRA, MTRA, or Development Agreement. The amount of these reductions will be as follows: (a) the then standard royalty rates will be reduced in the amounts set forth above in this Item 6; and (b) the then standard advertising contribution rates will be reduced by a percentage of Gross Sales that varies based on the year of the term of the applicable Franchise Agreement in the amounts shown in the following table:
Source: Item 6 — OTHER FEES (FDD pages 32–46)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, certain franchisees may qualify for reduced royalty rates and advertising contribution rates for a Sizzle Image Restaurant. This is applicable to franchisees who have signed a TRA (Traditional Restaurant Agreement), an MTRA (Multi-Unit Restaurant Agreement), or a Development Agreement.
To qualify, Burger King must approve the franchisee, in its sole discretion, to develop one of the first 100 restaurants in the Sizzle Image. The determination of which restaurants qualify as the first 100 is also at Burger King's sole discretion. If approved, the franchisee will receive a reduction in the then-standard royalty rates, as well as a reduction in the then-standard advertising contribution rates.
The advertising contribution rate reduction is calculated as a percentage of Gross Sales, and the specific percentage varies based on the year of the term of the applicable Franchise Agreement. It is important for prospective franchisees to note that these reductions are not guaranteed and are subject to Burger King's approval and determination.