Can Burger King assign its rights under the Guaranty agreement to another party?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
All the terms, covenants, representations, warranties and conditions of this Agreement shall be binding upon, and shall inure to the benefit of and be enforceable by the successors and assigns of BKC. This Agreement and the rights and obligations under it shall not be assignable by the BUYER. Any assignment in contravention of this provision shall be void. Any assignment by BUYER shall not relieve BUYER of its liabilities hereunder.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, the terms of the agreement are binding upon and enforceable by the successors and assigns of BKC. This means Burger King can transfer or assign its rights and benefits under the agreement to another party.
This clause is included in many franchise agreements. It allows Burger King to sell or transfer its interests in the franchise agreement to a new entity. For a potential franchisee, this means that the company they initially contracted with might change during the term of the agreement.
While Burger King can assign the agreement, the franchisee cannot. The FDD states that the agreement and the rights and obligations under it shall not be assignable by the BUYER, and any assignment in contravention of this provision shall be void. This means that a franchisee cannot transfer their rights or obligations to someone else without Burger King's approval, and any attempt to do so would be invalid.