Who determines the allocation of the Advertising Contribution between national, regional, and local expenditures for Burger King franchises?

According to Burger King's 2025 Franchise Disclosure Document, Burger King Corporation (BKC) determines the allocation of the Advertising Contribution between national, regional, and local expenditures. This allocation is made at BKC's sole discretion, using its business judgment.

While Burger King has the final say in allocating advertising funds, the document states that BKC will meet with the Franchisee Advisory Council at least once per year. During these meetings, they will discuss and attempt to establish the types of media to be used (the "Media Mix") and the percentage of the total annual Advertising Contribution to be spent on media (the "Media Spending Goal").

However, if BKC and the Franchisee Advisory Council cannot agree on the Media Mix or the Media Spending Goal, BKC has the right to make the final decision based on its business judgment. If BKC unilaterally establishes the Media Mix, it cannot spend more than 10% of the prior fiscal year's national media expenditures on new media channels, and any new media channels must be accessible to at least two-thirds of the established areas of dominant influence in the United States. BKC is also expected to use reasonable efforts to meet the Media Spending Goal, but must spend no less than 65% of the total annual Advertising Contribution on media.