What fee does Burger King charge for facilitating the execution of the intercreditor agreement?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall pay BKC a transfer fee in the amount set forth as the Intercreditor Agreement Transfer Fee on the Key Contract Data page for the costs and expenses incurred by BKC in connection with facilitating the execution of the intercreditor agreement (the "Intercreditor Agreement Transfer Fee").
The Intercreditor Agreement Transfer Fee is in addition to any other transfer fees referenced in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 127–995)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, a franchisee must pay Burger King an Intercreditor Agreement Transfer Fee for costs and expenses Burger King incurs while facilitating the execution of the intercreditor agreement. The exact amount of this fee is located on the Key Contract Data page. This fee is in addition to any other transfer fees referenced in the Franchise Agreement.
This fee is charged when a franchisee seeks to pledge, mortgage, hypothecate, or otherwise encumber the franchise agreement or the franchise itself as security for an obligation. This action requires Burger King's express written consent, which is given in connection with the execution of Burger King's then-current third-party intercreditor agreement. The fee covers Burger King's costs associated with this process.
For a prospective Burger King franchisee, this means that if they need to use their franchise as collateral for financing, they will incur this Intercreditor Agreement Transfer Fee. It is crucial to consult the Key Contract Data page within the FDD to determine the specific amount of this fee, as it can impact the overall cost of securing financing for the franchise. Franchisees should factor this fee into their financial planning if they anticipate needing to leverage their franchise for financial backing.