What conditions must a Burger King franchisee meet to receive incentives for a restaurant through the RTF2 Program?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
- (xii) Franchisee's receipt of, and BKC's obligation to pay, the Franchisor Contribution, the Fortress DMA Contribution, if applicable, and the Lessor Contribution, if applicable, for any Restaurant is conditioned upon the satisfaction of each of the following conditions: (A) the Franchisee must Complete the RTF2 Remodel of the Restaurant by the applicable Remodel Deadline set forth in Section 1 above; (B) the Franchisee at the time of such Completion and at the time of BKC's payment of the Franchisor Contribution, Fortress DMA Contribution, or the Lessor Contribution, if applicable, must not be in default or breach of any franchise agreement, lease, or any other agreement between Franchisee or any of the Franchisee Affiliates and BKC, including without limitation any Reclaim the Flame Master Program Agreement, any Royal Reset Restaurant Improvement and Bailment Agreement, and any Drive-Thru and Pick-Up Experience Royal Reset Restaurant Improvement and Bailment Agreement, and must have substantially complied with the terms and conditions of all such agreements throughout their respective terms; (C) the Franchisee at the time of such Completion and at the time of BKC's payment of the Franchisor Contribution, Fortress DMA Contribution, or the Lessor Contribution, if applicable, must have paid all monetary obligations owed to BKC under any franchise agreement, lease, or any other agreement, or otherwise owed to BKC, and must have timely paid or otherwise satisfied these obligations throughout the term of this Program Agreement; (D) from and after the date of this Program Agreement, Franchisee's Managing Owner (as such term is defined in the Franchise Agreements) must not acquire or enter into any ownership, operational or management commitments or responsibilities in any restaurant business not already existing as of the date of this Program Agreement, which business(es), if any, are enumerated on Schedule 1 attached hereto, other than the BURGER KING® Restaurants owned by Franchisee; (E) on or before the applicable Remodel Deadline, BKC must have verified Completion of the RTF2 Remodel of the Restaurant; (F) the Franchisee must execute and return to BKC the RTF2 Agreements, the Lease/Sublease Agreement (if applicable), and any other documents required by BKC for the applicable Restaurant no later than ten (10) days after receipt of such documents from BKC and pay any franchise fee described in Section 5(a) above; (G) the Franchisee must provide to BKC, with respect to the RTF2 Remodel of the Restaurant, the Project Bid Form, Detailed Cost Breakdown, lien waivers (from general contractor and subcontractors), ADA certificate, ADAAG checklist, franchise affidavit, general contractor affidavit (each of the foregoing in a form acceptable to BKC), certificate of completion and/or occupancy from the government body having jurisdiction, a list of subcontractors used by the general contractor, paid invoices for all costs and expenses incurred by Franchisee in Completing the RTF2 Remodel, and such other documents as BKC may require (collectively, the "Close-out Documents"), provided, however, with respect to an RTF2 Remodel of a Restaurant at which BKC has no interest in the real property, land or building, including without limitation, as a fee simple owner, tenant, or subtenant of the real property, land or building, the only Close-out Documents the Franchisee must provide to BKC pursuant to this clause G are the Detailed Cost Breakdown and the certificate of completion and/or occupancy from the government body having jurisdiction; (H) the RTF2 Remodel of the Restaurant must be Completed free of all liens; and (I)
Source: Item 23 — RECEIPTS (FDD pages 127–995)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, a franchisee must meet several conditions to receive incentives for a restaurant through the RTF2 Program. These conditions encompass completing the required remodel by the specified deadline, maintaining compliance with all agreements, and fulfilling all monetary obligations to Burger King.
Specifically, the franchisee must complete the RTF2 remodel of the restaurant by the applicable remodel deadline. They must not be in default or breach of any franchise agreement, lease, or other agreement with Burger King or its affiliates at the time of completion and payment. All monetary obligations owed to Burger King must be paid on time throughout the program's term. The franchisee's managing owner must also refrain from acquiring ownership or management responsibilities in any other restaurant business not already existing as of the program agreement date, with exceptions noted on Schedule 1.
Additional requirements include Burger King's verification of the remodel's completion by the deadline, execution and return of the RTF2 agreements and other required documents within ten days of receipt, and payment of any applicable franchise fees. The franchisee must also provide all necessary close-out documents, such as project bid forms, detailed cost breakdowns, lien waivers, ADA certificates, and paid invoices. The RTF2 remodel must be completed free of all liens. Meeting these conditions is essential for a Burger King franchisee to be eligible for incentives under the RTF2 Program.