Who at BKC must provide written consent for a Burger King franchise transfer?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
- K. The proposed transferor shall notify BKC in writing of any proposed transfer of an interest referred to in this Section 15 before the proposed transfer is to take place, and shall provide such information and documentation relating to the proposed transfer as BKC may reasonably require.
- L. BKC's consent to a transfer shall not constitute a waiver of any claims it may have against the transferring party, nor shall it be deemed a waiver of BKC's right to demand exact compliance with any of the terms of this Agreement by the transferor or transferee.
Source: Item 23 — RECEIPTS (FDD pages 127–995)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, written consent for a franchise transfer must be provided by Burger King Company LLC (BKC). Specifically, the proposed transferor must notify BKC in writing of any proposed transfer before it takes place and provide all information and documentation relating to the proposed transfer that BKC may reasonably require.
BKC's consent to a transfer does not waive any claims it may have against the transferring party, nor does it waive BKC's right to demand exact compliance with the terms of the Franchise Agreement by either the transferor or the transferee. The franchisee must also get approval from BKC for the terms of the sale contract, especially how it impacts the cash flow from the business after debt service, to ensure there is enough money for repairs or remodeling of the Burger King restaurant.
Furthermore, if a franchisee wants to add an additional holder who is an immediate family member, that additional holder must be approved as a Burger King franchisee according to BKC's current standards for new franchisees. The additional holder must also agree in writing to take on the liability and perform all the terms and conditions of the agreement to the same extent as the original franchisee. For corporations, the issuance and transfers of voting common stock are restricted and may only be issued or transferred with BKC's written consent.
In cases where a franchisee enters into a management agreement or consulting arrangement relating to the franchised restaurant, they must first obtain written consent from BKC. This requirement ensures that Burger King maintains control over the brand and operational standards, even when franchisees seek external expertise. Obtaining written consent from BKC is a crucial step in the transfer process, ensuring compliance with Burger King's standards and protecting the interests of all parties involved.