Does the Burger King FDD include audited consolidated statements of equity for RBILP and its subsidiaries?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached to this disclosure document at Exhibit Q are the audited consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, comprehensive income (loss), shareholders' equity and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes to the consolidated financial statements of RBI, and its subsidiaries. Exhibit Q also contains the audited consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, comprehensive income (loss), equity and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes to the consolidated financial statements of RBILP, and its subsidiaries.
If you are a resident of, or your franchise will be located in, California, Illinois, Maryland, North Dakota, Rhode Island, Virginia or Washington, RBILP will be the guarantor of all of our duties and obligations under the Franchise Agreement with you. Otherwise, RBI will be the guarantor of all of our duties and obligations under the Franchise Agreement with you. The RBI Guarantee of Performance and the RBILP Guarantee of Performance are also included at Exhibit Q.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 124–125)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, the financial statements attached as Exhibit Q include audited consolidated financial information for both RBI and RBILP and their subsidiaries. Specifically, Exhibit Q contains audited consolidated balance sheets as of December 31, 2024, and 2023, along with related consolidated statements of operations, comprehensive income (loss), equity, and cash flows for the three-year period ending December 31, 2024. These statements also include related notes to the consolidated financial statements. Therefore, the FDD does include audited consolidated statements of equity for RBILP and its subsidiaries.
This is important for prospective Burger King franchisees because it provides transparency into the financial health and performance of both the parent company (RBI) and the specific entity (RBILP) that may be guaranteeing the franchise agreement, depending on the franchisee's location. Franchisees in California, Illinois, Maryland, North Dakota, Rhode Island, Virginia, or Washington will have RBILP as their guarantor, while RBI will be the guarantor for franchisees in other states.
By reviewing these audited financial statements, potential franchisees can assess the financial stability and overall performance of the entities backing the Burger King franchise. This information can help them make informed decisions about investing in a Burger King franchise and understand the level of financial support and commitment they can expect from the franchisor and its related entities.