Can Burger King assign the loan and its interest in any collateral under the Crown Your Career Program?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
If you make any sale or transfer of any interest in you (if you are an entity), the BURGER KING Restaurant(s), or the Franchise Agreement, the outstanding balance and accrued interest due under the Promissory Note is immediately due to us (Promissory Note – Section 21). We can assign the loan and our interest in any collateral.
Source: Item 10 — FINANCING (FDD pages 60–62)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, under the Crown Your Career Program, Burger King can assign the loan and its interest in any collateral. This means Burger King has the right to transfer the loan and its associated security interests to another party.
This is a significant consideration for franchisees because it means the entity to whom they owe money and with whom they must interact regarding the loan could change during the loan term. While the terms of the loan itself should remain the same, dealing with a new lender could introduce different administrative processes or customer service approaches.
Prospective franchisees should inquire about Burger King's history of assigning these loans, the reasons why they might do so, and the process for notifying franchisees of any such transfer. Understanding these aspects can help a franchisee prepare for and manage potential changes in their lending relationship.