factual

What is the name of the addendum that certain Burger King franchisees may be permitted to sign on a case-by-case basis?

Burger_King Franchise · 2025 FDD

Answer from 2025 FDD Document

In the case of an existing Franchisee whose entity ownership was previously approved by us under the Entity Guidelines in effect prior to June 18, 2024 and provided the existing Franchisee meets all other requirements for renewing the Franchise Agreement, and is maintaining the ownership structure previously approved by us before the date of signing this successor Franchise Agreement, you will be permitted to sign a successor Franchise Agreement that allows a Managing Owner to designate an individual approved by us (who may be an Owner) as the "Managing Director" responsible for day to day operations. These existing Franchisees will sign the Legacy Entity Franchise Agreement Addendum attached as Exhibit J2 to this disclosure document. In addition, certain other Franchisees that we approve on a case by case basis, in our sole discretion, may be permitted to sign the Legacy Entity Franchise Agreement Addendum.

Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 10–18)

What This Means (2025 FDD)

According to the 2025 Burger King Franchise Disclosure Document, certain franchisees may be permitted to sign the Legacy Entity Franchise Agreement Addendum. This addendum is not automatically granted; Burger King approves its use on a case-by-case basis at their sole discretion. The addendum is attached as Exhibit J2 to the FDD.

Existing Burger King franchisees whose entity ownership was previously approved under guidelines in effect prior to June 18, 2024, may be eligible to sign this addendum. To qualify, these franchisees must meet all other requirements for renewing their Franchise Agreement and maintain the ownership structure previously approved by Burger King before signing the successor Franchise Agreement.

This addendum allows a Managing Owner to designate an individual approved by Burger King, who may or may not be an Owner, as the "Managing Director" responsible for day-to-day operations. This provides flexibility in the management structure for qualifying existing franchisees, allowing them to appoint a designated individual to oversee daily operations while still adhering to Burger King's standards and requirements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.