What criteria must a buyer meet to gain Burger King's approval for a franchise transfer?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN BKL | SUMMARY |
|---|---|---|
| k. “Transfer” by you – defined | Sec. 13.2 | Any sale, assignment or transfer of your interest in the BKL. |
| l. Our approval of transfer by | Sec. 13.2 | Our written consent is required; must be in connection |
| you | with sale of franchise rights. | |
| m. Conditions for our approval of transfer | Sec. 13.2 and Sec. 13.3 | Buyer must meet financial, operational, credit, legal criteria, approval of contract of sale; comply with ownership and corporate governing instrument requirements; satisfaction of all obligations at time of transfer; completion of training; payment of transfer fee; execution of any assignment, a general release of us by seller, and a current Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–94)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, if a franchisee wants to transfer their franchise rights, the buyer must meet certain criteria to gain Burger King's approval. Burger King's written consent is required for any sale, assignment, or transfer of interest in the Burger King franchise. This transfer must also be connected with the sale of the franchise rights.
The prospective buyer needs to satisfy financial, operational, credit, and legal criteria as determined by Burger King. The contract of sale also requires approval from Burger King. The buyer must comply with all ownership and corporate governing instrument requirements.
Furthermore, the franchisee must ensure that all obligations are satisfied at the time of the transfer. The buyer is also required to complete the necessary training programs that Burger King mandates. A transfer fee must be paid to Burger King to finalize the transfer. Finally, the buyer must execute any assignment, and the seller must provide a general release of claims against Burger King, along with signing the current Franchise Agreement.