What is the condition for a Burger King franchisee to transfer any ownership interest in the franchise granted?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) If Franchisee desires to transfer Franchisee's interest in any Participating Restaurant during the Term, Franchisee acknowledges and agrees that a condition to any such transfer shall be the party or parties acquiring such interest in the Participating Restaurant (collectively, the "Transferee") agreeing to participate in the Ad Fund FTF Program with respect to such Participating Restaurant. In furtherance of the foregoing, the Transferee shall enter into a Co-Investment Agreement in the form of this Agreement with respect to each Participating Restaurant being acquired by the Transferee concurrently with the execution by Transferee of the Franchise Agreement for such Participating Restaurant. Franchisee agrees that BKC may withhold its consent to any transfer of Franchisee's interest in any Participating Restaurant if the proposed Transferee does not enter into a Co-Investment Agreement in the form of this Agreement with respect to each Participating Restaurant acquired by the Transferee.
Source: Item 23 — RECEIPTS (FDD pages 127–995)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, if a franchisee desires to transfer their interest in any participating restaurant during the term of the agreement, a condition of such transfer is that the party acquiring the interest (the "Transferee") must agree to participate in the Ad Fund FTF Program with respect to that restaurant.
In order to participate in the Ad Fund FTF Program, the Transferee must enter into a Co-Investment Agreement, which is in the same form as the original agreement, concurrently with the execution of the Franchise Agreement for the participating Burger King restaurant being acquired.
Burger King retains the right to withhold consent for any transfer if the proposed Transferee does not enter into the required Co-Investment Agreement. This ensures that all new owners are committed to the advertising and marketing programs established by Burger King, maintaining brand consistency and supporting the overall network.