What agreement obligates a Burger King franchisee to remodel the franchised restaurant in connection with the purchase of the franchised restaurant from BKC, according to the Carrols Refranchise Addendum?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
- **2.
REMODEL REQUIRED.** Franchisee must Complete the RTF2 Remodel of the Franchised Restaurant in accordance with the terms of the Remodel Agreement.
Franchisee acknowledges and agrees that Completion of the RTF2 Remodel is a material consideration for and inducement to BKC to enter into the Franchise Agreement and this Addendum.
All references to "the RTF2 Remodel" in this Addendum shall mean an RTF2 Remodel of the Franchised Restaurant.
All provisions of the Remodel Agreement shall be applicable to the Franchised Restaurant, including, but not limited to, Sections 7 and 8 of the Remodel Agreement.
- **3.
LOCKUP PERIOD**.
Notwithstanding anything to the contrary in the Franchise Agreement, including, without limitation, the provisions of Section 15.F, until such time as the RTF 2 Remodel of the Franchised Restaurant is Completed in accordance with the Remodel Agreement and this Addendum, BKC may withhold its consent to any proposed transfer of an interest referred to in Section 15.A or 15.B for any reason or no reason whatsoever in its sole discretion.
- **4.
DEFAULT AND TERMINATION**.
Subsection (26) of Section 18.A. of the Franchise Agreement is hereby deleted in its entirety and replaced with the following:
- (26) Failure by (i) Franchisee to comply with any other provisions of this Agreement, the Lease for the Premises, or any other agreement relating to the Franchised Restaurant, (ii) Franchisee (or any Affiliate) to comply with the Remodel Agreement, or (iii) Franchisee (or any Affiliate) to comply with any provision of any BURGER KING franchise agreement, lease or other agreement between Franchisee (or such Affiliate) and BKC relating to any of the BURGER KING Restaurants listed on SCHEDULE 1 attached hereto.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)
What This Means (2025 FDD)
According to the 2025 Burger King Franchise Disclosure Document, specifically referencing the Carrols Refranchise Addendum, a franchisee is obligated to complete the RTF2 Remodel of the franchised restaurant as per the terms outlined in the Remodel Agreement. This obligation is a material consideration and an inducement for Burger King to enter into the Franchise Agreement and the Carrols Refranchise Addendum.
The addendum states that all provisions of the Remodel Agreement apply to the franchised restaurant, including sections 7 and 8 of that agreement. Furthermore, Burger King may withhold consent to any proposed transfer of interest until the RTF2 Remodel is completed according to the Remodel Agreement and the addendum.
Failure by the franchisee or any affiliate to comply with the Remodel Agreement constitutes a default under the franchise agreement. This highlights the importance Burger King places on franchisees adhering to the remodel requirements as part of maintaining brand standards and customer experience. Prospective franchisees should carefully review the Remodel Agreement to understand the full scope of their obligations and the potential consequences of non-compliance.