If obligations and restrictions in the Burger King lease conflict with those in the Master Lease, which obligations and restrictions prevail?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event the obligations and restrictions imposed on Lessee under the Lease conflict with the obligations and restrictions imposed upon Lessor, as tenant under the Master Lease, then the more burdensome and restrictive of such obligations and restrictions shall prevail and be binding upon the Lessee herein.
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, if there are conflicting obligations or restrictions between the franchisee's lease and the Master Lease, the more burdensome and restrictive of the two will take precedence. This means a Burger King franchisee must adhere to whichever requirement is stricter, regardless of which lease it originates from.
This condition is significant for prospective franchisees because it highlights the importance of carefully reviewing both the standard lease agreement and the Master Lease. Franchisees need to understand all obligations under both agreements to ensure compliance with the more stringent requirements. This could impact operational decisions, costs, and the overall management of the Burger King restaurant.
This type of clause is relatively common in franchise agreements where the franchisor subleases property to the franchisee. It protects the franchisor's interests as the primary tenant under the Master Lease. Franchisees should seek legal counsel to fully understand the implications of this clause and how it may affect their business operations and financial obligations.