How often can the Digital App License Fees for Burger King be adjusted by the Provider?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that, at any time on or after May 1, 2023 (but no more frequently than once per calendar year), the foregoing Digital App License Fees are subject to adjustment by Provider (i.e., an increase or a decrease as applicable) to cover the fees incurred by, and the costs and expenses of, Provider or one or more of its Affiliates in providing, improving, and expanding the Cloud Services as determined by Provider in its discretion.
Source: Item 23 — RECEIPTS (FDD pages 127–995)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, the Digital App License Fees are subject to adjustment by the Provider. These adjustments, which can be either increases or decreases, are designed to cover the fees, costs, and expenses incurred by the Provider or its affiliates in providing, improving, and expanding the Cloud Services.
The key stipulation is that these adjustments can be made at any time on or after May 1, 2023. However, the Provider cannot adjust the Digital App License Fees more frequently than once per calendar year. This means that even if costs fluctuate significantly, Burger King franchisees can expect a maximum of one adjustment to these fees each year.
This provides a degree of predictability for franchisees in managing their expenses related to the digital app services. While the fees can change, the annual limitation on adjustments prevents the Provider from making frequent changes that could disrupt a franchisee's financial planning. Franchisees should factor in the potential for these annual adjustments when budgeting and forecasting their operational costs.