What information about the registered owners of the franchisee's equity interests must be provided to Burger King?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to furnish BKC with such evidence as BKC may request from time to time for the purpose of assuring BKC that Franchisee's efforts and equity interest remain as represented in this Agreement.
No holder of shares of stock or other equity interests in the Franchisee, in any Owner or in any Managing Owner shall directly or indirectly sell, assign, convey, give away, mortgage, pledge, hypothecate, or otherwise transfer or encumber any legal or beneficial interest in such stock or equity interest without the prior written consent of BKC.
Franchisee covenants and agrees that during the Term of this Agreement, neither Franchisee, nor the Managing Director, nor any other person or entity including its parent, subsidiaries, Owners, Affiliates and sister companies who directly or indirectly control more than 10% of the equity securities of the Franchisee, will own, operate or have any direct or indirect interest (whether through stock ownership, partnership, trust, joint venture, management agreement or otherwise) in any nationally or regionally branded hamburger business, except other franchised BURGER KING Restaurants.
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, franchisees must furnish Burger King with evidence that assures Burger King that the franchisee's efforts and equity interest remain as represented in the franchise agreement.
Burger King also requires that no holder of shares of stock or other equity interests in the franchisee, in any Owner or in any Managing Owner directly or indirectly sell, assign, convey, give away, mortgage, pledge, hypothecate, or otherwise transfer or encumber any legal or beneficial interest in such stock or equity interest without Burger King's prior written consent.
Furthermore, Burger King states that neither the Franchisee, nor the Managing Director, nor any other person or entity including its parent, subsidiaries, Owners, Affiliates and sister companies who directly or indirectly control more than 10% of the equity securities of the Franchisee, will own, operate or have any direct or indirect interest in any nationally or regionally branded hamburger business, except other franchised Burger King Restaurants.