Under the Burger King Investment Spending Program Agreement, when is the Franchisee's Additional Contribution due to BKC?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
PAYMENT: BKC will calculate the payment due and bill FRANCHISEE. FRANCHISEE's Additional Contribution is paid in arrears and is due to BKC on the 10th day of each month during the Term.
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 Franchisee's Additional Contribution under the Investment Spending Program Agreement is paid in arrears. Burger King calculates the payment due and bills the franchisee. The franchisee's additional contribution is due to Burger King on the 10th day of each month during the term of the agreement.
This means that Burger King franchisees participating in the Investment Spending Program must make these additional contributions to support local marketing programs. These contributions are calculated based on a formula that Burger King will specify, but the formula will not exceed 2% of the monthly gross sales of each participating restaurant and any un-owned restaurants.
Franchisees need to be aware of this additional monthly expense and factor it into their financial planning. Failure to make these payments can result in Burger King reducing funds in the DMA account by the amount the franchisee failed to pay, as well as incurring additional costs and expenses, including interest and reasonable attorneys' fees, for enforcing the agreement.