What is the Lessor Contribution for a Burger King FSS Remodel Grade "A", "B", or "D"?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
ighting Guidelines)
- Landscaping Upgrade (Refer to Landscape Guidelines)
- Seal and Stripe Parking Lot
- Current Brand Signage (Refer to Signage Guidelines)
- Directional signs, Clearance Bars (Refer to Drive-Thru Standards)
- Drive-Thru Equipment layout optimization
- Trash Enclosure Modernize | Optimize
- Adhere to ADA Compliance
- Safely and efficiently demolish existing building and structure carefully preserving utilities as needed
- Site condition assessment to determine new building location (zoning requirement, vehicular flow, visibility)
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- Exterior Design
Design package approval from the Design Team is required prior to submitting for jurisdictional review or going to permit.
- Follow Prototype Building Design Package
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- Interior Design
Design package approval from the Design Team is required prior to submitting for jurisd
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, the Lessor Contribution for FSS Remodel Grades A, B, or D depends on the royalty rate paid by the franchisee. If a Burger King restaurant is leased by the franchisee from BKC, and BKC owns the land and building, the franchisee may receive a Lessor Contribution for completing a Full, Scrape/Rebuild, or Upgrade RTF Remodel. The specific amount is determined by the royalty rate and the corresponding Lessor Contribution listed on Exhibit B (Full RTF Remodel), Exhibit C (Scrape/Rebuild RTF Remodel), or Exhibit D (Upgrade RTF Remodel). However, if the FSS Remodel Grade is an F at the time of BKC's issuance of the Individual Restaurant Contribution Addendum, the franchisee will not receive either a Franchisor Contribution or a Lessor Contribution.
For BKL Fee Properties only, the Lessor Contribution for FSS Remodel Grades A, B, and D is fixed based on the royalty rate. Specifically, a royalty rate of 4.5% corresponds to a Lessor Contribution of $170,000. The same Lessor Contribution of $170,000 applies if the royalty rate is 5.0%, 5.5%, or 6.0%.
For other properties, the Lessor Contribution for FSS Remodel Grades A, B, and D varies based on the royalty rate. At a 4.5% royalty rate, the Lessor Contribution is $100,000. This remains the same at royalty rates of 5.0%, 5.5%, and 6.0%. This contribution is only applicable if the franchisee completes a Full RTF Remodel, a Scrape/Rebuild RTF Remodel, or an Upgrade RTF Remodel and meets all other conditions outlined in the franchise agreement.