For a Burger King Co-Branded Facility, can the Operating Partner exercise day-to-day management responsibility for the Co-Branded Business(es)?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
- If the Franchised Restaurant is located at a Co-Branded Facility, the following is hereby added as Section 5.L of the Franchise Agreement:
L. Management of Franchised Restaurant
- (1) With respect to the development of a Co-Branded Facility, the Operating Partner shall not exercise any day-to-day management responsibility for the Co-Branded Business(es). FRANCHISEE shall designate another individual, or individuals, to supervise and manage the day-to-day operations of the Co-Branded Business(es). Such individual shall have the authority to direct any action necessary in connection with such management responsibilities.
- (2) FRANCHISEE shall retain and exercise direct management responsibility for the Franchised Restaurant and shall ensure that the day-to-day operation of the Franchised Restaurant is in compliance with the MOD Manual, with this Agreement, and with the terms of any lease and any other agreements relating to the Franchised Restaurant. FRANCHISEE shall devote full time and best efforts to the overall supervision of the Franchised Restaurant and any other BURGER KING Restaurants owned by FRANCHISEE.
- (3) FRANCHISEE agrees to furnish BKC with such evidence as BKC may request from time to time for the purpose of assuring BKC of the designation of a separate manager for each Co-Branded Business and that authority of that manager remains as represented in this Agreement.
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, if a Burger King restaurant is located at a Co-Branded Facility, the Operating Partner is prohibited from exercising day-to-day management responsibility for the Co-Branded Businesses. Instead, the franchisee must designate another individual or individuals to supervise and manage the daily operations of the Co-Branded Businesses, granting them the authority to direct necessary actions. This ensures that the Burger King restaurant's operations are managed separately from the co-branded businesses. Burger King defines a Co-Branded Facility as a Burger King Restaurant authorized to be developed at a site that includes one or more Co-Branded Businesses, which can include retail gas stations, food service, convenience stores, other franchised businesses, restaurants, or similar facilities located at the same premises.
The franchisee retains direct management responsibility for the Burger King restaurant itself. They must ensure that the day-to-day operation of the Burger King restaurant complies with the MOD Manual, the Franchise Agreement, and the terms of any lease or other agreements related to the restaurant. The franchisee is required to devote full time and best efforts to the overall supervision of the Burger King restaurant and any other Burger King restaurants they own.
Burger King requires franchisees to provide evidence, upon request, that a separate manager has been designated for each Co-Branded Business and that this manager's authority remains as represented in the agreement. This provision allows Burger King to maintain standards and operational control over its franchised restaurants, even when they are part of a co-branded facility, by ensuring dedicated management for each business operating at the location.