What is the condition for a Burger King franchisee to permit any assignment or transfer to occur contingently by agreement?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) That the transferee, at BKC's election, consistent with then-current BKC policy, (a) enters into a written assignment, in a form satisfactory to BKC, assuming and agreeing to discharge all of Franchisee's obligations under this Agreement, or (b) executes, for a term ending on the Expiration Date of this Agreement, BKC's then-current form of BURGER KING Restaurant franchise agreement applicable to such transferee and such other ancillary agreements as BKC may require for the Franchised Restaurant; provided, however, that the royalty and advertising contribution rates shall be the same as stated herein until such Expiration Date.
If the transferee is required to execute a new franchise agreement, such agreement shall supersede this Agreement in all respects;
- (6) That the transferee (or, if applicable, such owners of the transferee as BKC may request) meets all of the BKC requirements then applicable to ownership of franchises and executes a guarantee of the performance of Franchisee's obligations to BKC and BKC's Affiliates.
For the purposes of determining compliance, BKC shall have the right to examine and approve the form and content of all governing documents;
(7) That the Franchisee and each transferor execute a general release, in a form satisfactory to BKC, of any and all claims against BKC, its Affiliates, and their respective officers, directors, agents, and employees, in their corporate and individual capacities;
(8) Approval by BKC of the terms of the contract of sale which impact the sufficiency of cash flow from the business after payment of debt service to provide for, among other things, any needed repairs to or remodeling of the Franchised Restaurant; and
(9) That the transferor pay the Transferor Transfer Fee set forth on the Key Contract Data page in consideration of BKC's expenses in reviewing the proposed transfer (the "Transferor Transfer Fee").
In the event the transferee is not an existing approved BURGER KING franchisee, Franchisee seller shall pay BKC a New Franchisee Training Fee in the amount set forth as the New
Source: Item 23 — RECEIPTS (FDD pages 127–995)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, a condition for a Burger King franchisee to permit any assignment or transfer to occur is that the transferee, at Burger King's election, consistent with then-current Burger King policy, must either enter into a written assignment, in a form satisfactory to Burger King, assuming and agreeing to discharge all of the franchisee's obligations under the agreement, or execute Burger King's then-current form of Burger King Restaurant franchise agreement applicable to such transferee and such other ancillary agreements as Burger King may require for the Franchised Restaurant for a term ending on the Expiration Date of this Agreement. The royalty and advertising contribution rates shall remain the same as stated in the original agreement until such Expiration Date.
If the transferee is required to execute a new franchise agreement, that agreement will supersede the original agreement in all respects. Additionally, the transferee (or, if applicable, such owners of the transferee as Burger King may request) must meet all of the Burger King requirements then applicable to ownership of franchises and execute a guarantee of the performance of franchisee's obligations to Burger King and Burger King's Affiliates. For the purposes of determining compliance, Burger King has the right to examine and approve the form and content of all governing documents.
Furthermore, the franchisee and each transferor must execute a general release, in a form satisfactory to Burger King, of any and all claims against Burger King, its Affiliates, and their respective officers, directors, agents, and employees, in their corporate and individual capacities. Burger King must also approve the terms of the contract of sale which impact the sufficiency of cash flow from the business after payment of debt service to provide for, among other things, any needed repairs to or remodeling of the Franchised Restaurant. The transferor must pay the Transferor Transfer Fee set forth on the Key Contract Data page in consideration of Burger King's expenses in reviewing the proposed transfer. If the transferee is not an existing approved Burger King franchisee, the Franchisee seller must pay Burger King a New Franchisee Training Fee in the amount set forth as the New Franchisee Training Fee.