For Burger King franchises, what section of the franchise agreement does the 'Royalty Rate' paragraph replace?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
5. ROYALTY RATE. The following paragraphs replace Section 9.A of the Agreement:
Source: Item 23 — RECEIPTS (FDD pages 127–995)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, the paragraph regarding the Royalty Rate replaces Section 9.A of the standard Burger King Franchise Agreement. This means that the terms outlined in Section 9.A of the original agreement are superseded by the specific Royalty Rate terms detailed elsewhere in the FDD.
For a prospective Burger King franchisee, this is an important detail because it clarifies that the royalty obligations are subject to change and are specifically defined in the updated Royalty Rate paragraph, overriding any potentially conflicting information in the original Section 9.A. Franchisees should carefully review the Royalty Rate paragraph to understand their ongoing financial obligations to Burger King.
It is common practice for franchise agreements to be updated via addenda or amendments, and this clause highlights the importance of reviewing all sections of the FDD in conjunction with the original franchise agreement to fully understand the current terms and conditions. This ensures that franchisees are aware of the most current royalty obligations and any other modifications to the standard agreement.