What actions must a Burger King franchisee take to obtain a successor Franchise Agreement?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
sions in the agreements attached to this disclosure document.**
FRANCHISE AGREEMENT (Exhibits D1 and D2)
(Individual/Owner-Operator and Entity forms, respectively)
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| a. Length of the franchise term | Sec. 1 | Term is 20 years for freestanding Restaurant; may be less for non-traditional locations, where property control is for a shorter period, or as agreed by you and us1 |
| b. Renewal or extension of the term | Sec. 1, 17 | No right of renewal. Option to obtain a successor Franchise Agreement up to 20 years if in compliance with Franchise Agreement and with all other agreements with us, if property control is obtained, and if Franchisee meets our then current successor requirements. No successor Franchise Agreement option if you are in the Big-Box Program or operate a Delivery Restaurant. |
| c. Requirements for you to renew or extend | Sec. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–94)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, franchisees do not have a right to renew their franchise agreement. Instead, they have the option to obtain a successor Franchise Agreement, potentially lasting up to 20 years. This option is contingent upon meeting several requirements.
To be eligible for a successor agreement, a Burger King franchisee must be in compliance with their existing Franchise Agreement and all other agreements with Burger King. They must also secure property control for the restaurant location and meet Burger King's then-current requirements for successor agreements. These requirements involve submitting and obtaining approval of a Successor Franchise Application and General Release.
Furthermore, the franchisee will need to sign the current Franchise Agreement, which may contain terms that are materially different from the original agreement. They must also pay a successor franchise fee and sign any other required agreements, including Successor Addenda. Compliance with building upgrade and inspection requirements is also necessary. It's important to note that franchisees participating in the Big-Box Program or operating a Delivery Restaurant are not eligible for a successor Franchise Agreement.