What is the condition for a Burger King franchisee to permit any such assignment or transfer to occur directly?
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 franchisee wishing to transfer their franchise must meet several conditions to gain Burger King's approval. These conditions ensure that the new franchisee meets Burger King's standards and protects Burger King's interests.
First, the transferee must, at Burger King's election, either enter into a written agreement assuming all of the franchisee's obligations or execute Burger King's current franchise agreement for the remaining term, maintaining the same royalty and advertising contribution rates. If a new agreement is required, it supersedes the original. The transferee (and their owners, if requested by Burger King) must meet all of Burger King's current ownership requirements and guarantee the franchisee's obligations to Burger King and its affiliates.
Additionally, both the franchisee and transferor must execute a general release of claims against Burger King and its affiliates. Burger King must also approve the terms of the sale contract to ensure sufficient cash flow for debt service and any necessary restaurant repairs or remodeling. Finally, the transferor must pay a transfer fee to cover Burger King's expenses in reviewing the proposed transfer. If the transferee is not an existing Burger King franchisee, the seller must also pay a new franchisee training fee.
These conditions are typical in franchising, as franchisors want to ensure that any new franchisees are qualified and committed to maintaining brand standards. The fees associated with the transfer are also standard, as they compensate the franchisor for the time and resources spent reviewing and approving the transfer.