What agreement must a Burger King heir make to assume the franchise after the franchisee's death or incapacity?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) The Heir shall have successfully completed BKC's training for new franchisees.
(3) The Heir shall agree, in writing, to assume liability for and to perform all the terms and conditions of this Agreement to the same extent as the original franchisee.
(4) If the Heir is not approved or there is no Heir, the estate of the deceased shall sell the Franchised Restaurant to an acceptable party within eighteen (18) months from the date of Franchisee's death or incapacity, and BKC shall have an option, but not the obligation, to operate and/or manage the Franchised Restaurant for the account of Franchisee's estate until the deceased or incapacitated Franchisee's interest is transferred to another party acceptable to BKC.
Should BKC elect to operate and/or manage the Franchised Restaurant, BKC shall make a complete accounting and shall forward the net income from the operation to Franchisee's estate, less expenses and a reasonable management fee.
If the conveyance of the Franchised Restaurant to a party acceptable to BKC has not taken place within the eighteen (18)-month period, BKC shall have the option to purchase the Franchised Restaurant at fair market value.
Source: Item 23 — RECEIPTS (FDD pages 127–995)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, if a franchisee dies or becomes incapacitated, their heir must meet certain requirements to take over the franchise. First, the heir must successfully complete Burger King's training program for new franchisees. This ensures that the person taking over the restaurant has the knowledge and skills to maintain Burger King's standards.
In addition to completing the training, the heir must agree in writing to assume all the responsibilities and obligations of the original franchisee. This means the heir becomes liable for all terms and conditions outlined in the franchise agreement. This protects Burger King by ensuring the new operator is fully committed to upholding the franchise agreement.
If the heir does not meet these qualifications or if there is no heir, the estate of the deceased franchisee has 18 months to sell the restaurant to a party approved by Burger King. Burger King also has the option to operate or manage the restaurant during this period, providing an accounting of income and expenses to the estate, less a management fee. If the restaurant is not sold within the 18-month timeframe, Burger King has the option to purchase the restaurant at fair market value. This ensures that Burger King maintains control over its brand and operations, even in the event of a franchisee's death or incapacity.