Does the Burger King franchise agreement state that the franchise grant is personal to the Franchisee?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
cribed on Exhibit C to this Addendum, where the Franchised Restaurant is located and operated. The Premises includes the Common Areas.
- Section 1 of the Franchise Agreement is hereby deleted in its entirety and replaced by the following:
1. FRANCHISE GRANT: TERM AND LOCATION
BKC grants to FRANCHISEE and FRANCHISEE accepts a franchise for the duration of the Term (defined below) to use the BURGER KING System and the BURGER KING marks only in the operation of a BURGER KING Restaurant at the location described on the Key Contract Data
| Non-Traditional Facility Addendum (Individual/Owner-Operator) |
|---|
| Exhibit E1 (03/2025) |
| BK# |
page attached to this Agreement and incorporated by reference herein (the "Franchised Restaurant') (the term "Franchised Restaurant" consists solely of the shaded portions of the premises as set forth on Exhibit "A" (the "Premises")). The term of this Agreement commences on the date the Franchised Restaurant opens for business (the "Commencement Date"), and shall expire ____ (__) years thereafter (the "Term"), unless sooner terminated in accordance with the provisions of this Agreement. In the event of a dispute over the date that the Franchised Restaurant opens for business, the records maintained by BKC shall control and be dispositive. FRANCHISEE agrees to operate the Franchised Restaurant at the Premises for the entire duration of the Term. FRANCHISEE accepts this franchise with the full and complete understanding that the franchise grant contains no promise or assurance of renewal. The sole and entire conditions under which FRANCHISEE will have the opportunity of obtaining a Successor BURGER KING Franchise Agreement at expiration are those set forth herein in Section 17. This franchise is for the specified location only and does not in any way grant or imply any area, market or territorial rights proprietary to FRANCHISEE. Notwithstanding anything set forth above, if Franchisee continues to operate the Franchised Restaurant after the end of the Term and does not obtain a Successor BURGER KING Franchise Agreement in accordance with Section 17, Franchisee shall be deemed to be operating such Franchised Restaurant on a month-to-month basis under the terms and conditions of this Agreement and BKC may terminate this Agreement at any time after the end of the Term upon thirty (30) days prior written notice.
- The following introductory sections are hereby added to Section 5 of the Franchise Agreement (STANDARDS AND UNIFORMITY OF OPERATION):
FRANCHISEE acknowledges that the signs, equipment installation and configuration, menu, size and appearance of the Franchised Restaurant operated pursuant to this Agreement may significantly differ from that of a Traditional Restaurant. Changes in the standards, specifications and procedures applicable to the operation of the Franchised Restaurant and related Common Areas may become necessary and desirable from time to time, and FRANCHISEE agrees to accept and comply with such modifications and revisions. The adoption of such standards shall be solely at the discretion of BKC.
FRANCHISEE acknowledges that if the Premises includes a convenience store, the convenience store will not sell those items listed on Exhibit "D" attached hereto.
Employees of FRANCHISEE (i) shall not wear BURGER KING restaurant uniforms when working at any other business operated on the Premises, and (ii) shall not be assigned to work at the Franchised Restaurant and at any other business operated on the Premises contemporaneously during any shift of work hours.
4.
Source: Item 23 — RECEIPTS (FDD pages 127–995)
What This Means (2025 FDD)
According to the 2025 Burger King Franchise Disclosure Document, the franchise grant is specific to the franchisee and location. Burger King grants the franchisee the right to use the Burger King system and marks for the duration of the term, but only at the location specified in the agreement.
Burger King emphasizes that the franchise is for a specified location and does not grant any area, market, or territorial rights to the franchisee. The franchisee acknowledges that there is no promise or assurance of renewal, and the conditions for obtaining a Successor Franchise Agreement are outlined in Section 17 of the agreement.
Furthermore, Burger King requires all individuals with any interest in the franchised restaurant to be named in and be a party to the agreement. If the franchisee consists of more than one individual, an operating partner must be designated. This operating partner must maintain at least 50% unencumbered equity ownership and controlling interest, devote full time and best efforts to the restaurant's operation, have no other operational or management commitments, and live in the vicinity of the restaurant.