What obligations does a Burger King franchisee have upon termination or non-renewal of the franchise agreement regarding hazardous waste and property?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN BKL | SUMMARY |
|---|---|---|
| a. Length of the term of the BKL | Sec. 2.1 | Term is 20 years for freestanding franchise; may be less for non-traditional locations. Will vary by location depending on property control. Where we own the property, the typical term is 20 years.1 |
| b. Renewal or extension of the term | Not Applicable | No right of renewal. Depending on property control, if you meet the requirements for a successor franchise, we may offer you a new lease. |
| c. Requirements for you to renew or extend. | Not Applicable | After completion of required remodeling, you will have to sign the current form of the BKL and Franchise Agreement and pay a successor franchise fee, current royalty, advertising rates and rent, if applicable, and sign a release. |
| d. Termination by you | Not Applicable | You have no right to terminate. |
| e. Termination by us without | Not | We have no right to terminate without cause. |
| cause | Applicable | |
| f. Termination by us with cause | Sec. 9 | Failure to cure any default after receipt of notice. In some cases no cure period is required, but for most defaults, the period is 30 days. If any law or rule requires a longer notice or cure period than that provided in the BKL, the period required by law or rule will apply. |
| g. “Cause” defined – curable defaults | Sec. 6.6, 9 | You have 5 days to restore Building Improvement Funds if expended by us because of your default. You have 10 days to cure: non-payment of rent and percentage rent; You have 30 days to cure: failure to submit reports timely, understatement of gross sales, unauthorized transfer, loss of premises, failure to restore building after damage or destruction. |
| h. “Cause” defined – defaults which cannot be cured | Sec. 9 | Bankruptcy; you knowingly and intentionally submit false or misleading statements to us; assign BKL without consent; default after notice from us of multiple defaults; default under the Franchise Agreement.An event of default under the Reclaim the Flame Master Program Agreement by you or your affiliate if you or your affiliate is participating in the Reclaim the Flame Remodel Program. |
| i. Your obligations on termination / non-renewal | (a) Sec. 16.7 (b) Sec. 2 | Removal of hazardous waste materials, removal of underground or above ground storage tank, soil remediation and surrender site free of hazardous substances generated or used by you during lease term; fixtures and any personal property not removed by you become our property; make payment to us for repairs. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–94)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, upon termination or non-renewal of the Burger King Lease (BKL), franchisees have specific obligations regarding the restaurant premises. The franchisee is responsible for the removal of any hazardous waste materials, including the removal of underground or above-ground storage tanks. Additionally, the franchisee must conduct soil remediation to ensure the site is free of hazardous substances that were generated or used during the lease term.
Furthermore, any fixtures and personal property not removed by the franchisee become the property of Burger King. The franchisee is also responsible for making payments to Burger King for any necessary repairs to the property. These obligations are detailed in Sections 16.7 and 2 of the BKL.
These stipulations ensure that Burger King can take control of the property without assuming responsibility for environmental hazards or property damage caused by the franchisee's operations. Prospective franchisees should carefully consider these obligations, as the costs associated with hazardous waste removal and site remediation can be substantial.