How are the monthly Building Improvement Payments determined for a Burger King franchise?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
Lessor for such Repairs or other obligations. These receipts shall be prima facie evidence of the payment of the charges paid by Lessor. Except in the case of emergency, Lessor shall give Lessee ten (10) days' notice before taking any such action. If Lessee fails to pay any such amounts due to Lessor under this Section 5.2, Lessor may add the same to Lessee's "Rent" and recover the same by all remedies available to Lessor for recovery of Rent in arrears.
§5.3 ALTERATIONS. Lessee agrees that it will at its own cost and expense make such reasonable alterations to the interior or exterior of the Premises as may reasonably be requested by Lessor from time to time in order to modify the appearance of the Building to reflect the then current image of BURGER KING restaurants.
Lessee shall not at any time make any alteration, change, addition or improvement (hereinafter collectively called "Alterations") in or to the interior or exterior of the Premises without the prior written consent of Lessor. In the event consent is given:
- (a) the Alterations shall be performed in a first class workmanlike manner at Lessee's sole expense, and shall not weaken or impair the structural strength or lessen the value of the Premises, or change the purpose for which the Premises may be used;
- (b) the Alterations shall be made according to plans and specifications therefor, which shall be first submitted to and approved in writing by Lessor;
- (c) before the commencement of work on any Alterations, such plans and specifications shall be approved by all governmental authorities having jurisdiction and any public utility company having an interest in the Alterations;
- (d) before the commencement of any Alterations, Lessee shall pay the amount of any increase in premiums on insurance policies for endorsements covering the risk during work on the Alterations and workmen's compensation insurance covering all persons employed in connection with that work;
- (e) if the estimated cost of the Alteration exceeds $50,000.00, Lessee shall furnish to Lessor a surety bond of a company acceptable to Lessor, in an amount equal to the estimated cost of such work, or other security satisfactory to Lessor, guaranteeing the completion of such work, free and clear of all liens and encumbrances;
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)
What This Means (2025 FDD)
Based on the 2025 Burger King Franchise Disclosure Document, franchisees may be required to make alterations to the interior or exterior of the premises to reflect the current Burger King image. These alterations are made at the franchisee's own cost and expense.
The franchisee must obtain the Lessor's written consent before making any alterations, changes, additions, or improvements to the premises. If consent is granted, the alterations must be performed in a workmanlike manner, without weakening the structure or lessening the value of the premises, and according to plans and specifications approved by the Lessor.
Before starting any work, the plans and specifications must be approved by all relevant governmental authorities and any public utility company with an interest in the alterations. If the franchisee fails to make necessary repairs or fulfill their obligations, the Lessor may enter the premises to make such repairs, and the franchisee is responsible for repaying all costs and expenses incurred by the Lessor, along with a 15% service charge, within 15 days of receiving copies of the payment receipts. The FDD does not specify how the monthly building improvement payments are determined.