What are the obligations of the Burger King franchisee regarding 'Repairs and Maintenance' of the premises, as outlined in the franchise agreement?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1. Repair and Maintenance. FRANCHISEE shall, at its expense, continuously throughout the Term of this Agreement, maintain the Franchised Restaurant and all Common Areas located on the Premises in good condition and repair in accordance with BKC's then current repair and maintenance standards.
- 2. Current Image. Franchisee shall improve, alter and remodel the Franchised Restaurant to bring it into conformance with the national and local plans, specifications and/or other standards for new or remodeled non-traditional BURGER KING Restaurants as may hereafter be reasonable changed and defined from time to time by BKC ("Current Image") in accordance with the following timetable:
- (i) If the Term of this Agreement is for a period of ten (10) to twenty (20) years, during the tenth year of the Term, FRANCHISEE shall remodel, improve and alter the exterior of the Franchised Restaurant to conform with the Current Image in effect on the ninth anniversary of the date of this Agreement.
- (ii) BKC and the Franchisee Advisory Council shall meet annually to discuss and establish the components of Current Image for the Franchised Restaurant. The Current Image as established by BKC and the Franchisee Advisory Council, from time to time, shall be binding upon FRANCHISEE. If BKC and the Franchisee Advisory Council do not agree on the Current Image, BKC and the Franchisee Association shall settle the matter by arbitration by a sole arbitrator in accordance with the then current nonadministered arbitration rules of the Center for Public Resources. The arbitration shall be governed by the United States Arbitration Act (U.S.A.A.), and judgment upon the decision rendered by the arbitrator shall be binding on FRANCHISEE and BKC, and except as provided in Section 10(a) of the U.S.A.A., shall not be appealable in any forum. The decision may be entered by any court having jurisdiction thereof. The place of arbitration shall be Miami, Florida.
Failure of FRANCHISEE to comply with the terms of this section 5.B shall be deemed a material default of this Agreement.
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 have specific obligations for maintaining the premises. The franchisee is responsible, at their own expense, for continuously maintaining the franchised restaurant and all common areas on the premises in good condition and repair. This maintenance must adhere to Burger King's then-current repair and maintenance standards.
In addition to general maintenance, Burger King franchisees must also ensure the restaurant conforms to Burger King's current image standards. If the franchise agreement term is between 10 to 20 years, the franchisee is required to remodel, improve, and alter the exterior of the restaurant during the tenth year of the term to match the current image in effect on the ninth anniversary of the agreement date. The components of the current image are discussed and established annually by Burger King and the Franchisee Advisory Council, and these standards are binding on the franchisee.
Failure to comply with these repair and maintenance or current image standards can be considered a material default of the franchise agreement. Furthermore, franchisees may be required to complete specific improvements, remodeling, and repairs to meet Burger King's current equipment, lighting, and repair and maintenance standards within a specified timeframe after the commencement date, as detailed in an exhibit to the Replacement Franchise Addendum. Franchisees may also be required to complete a Successor Remodel, conforming to standards specified in another exhibit, with failure to complete this remodel by the specified date also constituting a material default.