The US company will purchase its initial 10 per cent shareholding at $1.35 per share, the stock price when talks towards the deal began last April. That's well below today's share price of $2.65.
BurgerFuel shares more than doubled to $3.10 following the announcement of the Franchise Brands partnership last month.
In order to help pave the way for the partnership to go ahead, Milford agreed to sell 600,000 of its BurgerFuel shares, also at $1.35 a piece, to Mason and Roberts.
Milford executive director Brian Gaynor said the fund manager had agreed to the sell-back in order to make the terms of the Franchise Brands partnership "more palatable" for the majority shareholders.
"We reckon that by helping the deal to be executed, we're going to end up substantially better off because hopefully they will be able to execute on the delivery of BurgerFuel stores into the United States and therefore the company will perform quite well," Gaynor said. "If this deal hadn't come through the share price would only be around $1.30."
Milford will retain around 1.9 million BurgerFuel shares, giving it with a shareholding of over 3 per cent.
The investment leaves BurgerFuel with cash reserves of $9 million to $10 million and no debt as it prepares for its next phase of growth.