What are the duties and obligations that Restaurant Brands International Inc. guarantees to assume for Burger King Company LLC under the Burger King franchise registration?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, Restaurant Brands International Inc., a Canadian corporation (the "Guarantor"), located at 130 King Street West, Suite 300, Toronto, Ontario, M5X 1E1, Canada, absolutely and unconditionally guarantees to assume the duties and obligations of Burger King Company LLC, located at 5707 Blue Lagoon Drive, Miami, Florida 33126 (the "Franchisor"), under its franchise registration in each state as identified in Item 21 of this Franchise Disclosure Document, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time with residents of, or for locations in, those states. This guarantee continues until all such obligations of the Franchisor under such franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to such franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, Restaurant Brands International Inc. (RBI), as the Guarantor, absolutely and unconditionally guarantees to assume the duties and obligations of Burger King Company LLC (BKC), the Franchisor, under its franchise registration in each state as identified in Item 21 of the FDD. This guarantee also extends to the Franchise Agreement identified in the 2025 Franchise Disclosure Document, including any amendments, modifications, or extensions made with franchisees who are residents of or have locations in those states.
This guarantee remains in effect until all obligations of BKC under such franchise registrations and the Franchise Agreement are satisfied, or until BKC's liability to such franchisees under the Franchise Agreement has been completely discharged, whichever occurs first. Importantly, RBI's guarantee is not discharged even if a franchisee's claim against BKC remains outstanding, providing an additional layer of security for franchisees. RBI waives the requirement of notice of acceptance of this guarantee but does not waive receipt of notice of default on the part of BKC.
In practical terms, this guarantee means that if Burger King Company LLC fails to meet its obligations to franchisees, Restaurant Brands International Inc. steps in to fulfill those obligations. This provides a significant level of assurance to franchisees, knowing that the parent company is ultimately responsible for ensuring the terms of the franchise agreement are upheld. This type of guarantee is common in franchising, especially when the franchisor is a subsidiary of a larger corporation, as it strengthens the financial security of the franchise system.