In the Burger King Development Agreement, what parties are collectively referred to as 'Principals'?

According to Burger King's 2025 Franchise Disclosure Document, the Development Agreement is executed by Burger King Company LLC (BKC) as the franchisor and the Developer, along with individual parties identified as 'Principal 1' and 'Principal 2'. The agreement includes signature lines for these parties, indicating their direct involvement and obligations under the Development Agreement.

These 'Principals,' along with the Developer, are bound by various obligations and restrictions outlined in the Development Agreement. For example, they must maintain the confidentiality of Burger King's proprietary information, and they are restricted from engaging in any competitive hamburger business during the term of the agreement and for one year after its termination or expiration, within a two-mile radius of any Burger King restaurant developed under the agreement. These restrictions extend not only to the Principals themselves but also to their parents, subsidiaries, and affiliates.

Furthermore, the Development Agreement specifies that if the Developer, any of its Affiliates, or any Principal challenges the validity of Burger King's trademarks or intellectual property rights, it can be considered an event of default. Similarly, providing materially false or misleading information to Burger King can also lead to termination of the agreement. Burger King may also consider the performance of restaurants owned by the Principals when evaluating the Developer's overall performance.

Prospective Burger King developers should carefully review the Development Agreement to understand the full scope of obligations and restrictions applicable to themselves and any identified Principals. It is important to note that the term 'Principals' is specifically defined within the context of the Development Agreement and may carry significant legal and financial implications for those individuals.