If the prospective transferee is not an existing approved Burger King franchisee, what fee does the Franchisee as transferor have to pay BKC in connection with the transfer of the first Burger King Restaurant involved in the transaction?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) The transferor must pay the Transfer Fee set forth on the Key Contract Data page in consideration of BKC's expenses in reviewing the proposed transfer (the "Transfer Fee"). In the event the prospective transferee is not an existing approved BURGER KING franchisee, Franchisee as transferor shall pay BKC a New Franchisee Training Fee in the amount set forth as the New Franchisee Training Fee on the Key Contract Data page in connection with the transfer of the first BURGER KING Restaurant involved in the transaction (the "New Franchisee Training Fee");
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 the prospective transferee is not an existing approved Burger King franchisee, the franchisee (transferor) must pay Burger King Corporation (BKC) a New Franchisee Training Fee. The amount of this fee is set forth as the New Franchisee Training Fee on the Key Contract Data page. This fee is specifically for the transfer of the first Burger King Restaurant involved in the transaction.
This means that a franchisee looking to transfer their restaurant to someone who is new to the Burger King system will incur an additional cost. This New Franchisee Training Fee is intended to cover the expenses Burger King incurs to train the new franchisee. The exact amount of this fee can be found on the Key Contract Data page of the FDD, which is a crucial reference point for understanding the financial implications of such a transfer.
Prospective franchisees should carefully review the Key Contract Data page to determine the exact amount of the New Franchisee Training Fee. Understanding this fee is essential for accurately assessing the costs associated with transferring a Burger King franchise to a new, unapproved franchisee. This information helps both the transferor and transferee plan for the financial obligations involved in the transfer process.