What is the condition for a Burger King franchisee to permit any such assignment or transfer to occur indirectly?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
If this Agreement has been assigned to a Corporation or LLC in accordance with Section 15 of this Agreement, any sale, attempted sale, assignment or other transfer of Voting Common Stock in the Corporation or Voting Units in the LLC to individuals or entities other than those approved by BKC as owners of Voting Common Stock or Voting Units without first giving BKC the right of first refusal described above shall be void and of no force and effect.
Source: Item 23 — RECEIPTS (FDD pages 127–995)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, if a Burger King franchisee has assigned their agreement to a corporation or LLC, any sale, assignment, or transfer of Voting Common Stock in the Corporation or Voting Units in the LLC to individuals or entities other than those approved by BKC as owners of the Voting Common Stock or Voting Units without first giving BKC the right of first refusal is void and of no force and effect.
This means that Burger King retains significant control over who ultimately owns and operates a franchise, even if the franchise is held by a corporate entity. A prospective franchisee should consider that any changes in ownership, even within a corporate structure, are subject to Burger King's approval. This requirement ensures that all owners meet Burger King's standards and protects the brand's reputation.
This condition is designed to prevent unapproved parties from gaining control of a Burger King franchise without the franchisor's consent. It is a common practice in franchising to maintain brand consistency and quality control by carefully vetting and approving all franchise owners. Franchisees need to be aware that failing to obtain prior approval from Burger King for any transfer of ownership, whether direct or indirect, can result in the transfer being deemed void.