What is the purpose of the Deferred Remodel Addendum for a Burger King Restaurant Franchise Agreement?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
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- IF BKL EXECUTED PRIOR TO REMODEL / DEFERRED REMODEL Lessee acknowledges that Lessee, as franchisee, has, contemporaneously with the execution of this Lease, executed that certain Franchise Agreement with the Lessor, as franchisor, for the operation of the BURGER KING® restaurant on the Premises (the "Franchise Agreement"), which requires the franchisee to complete certain renovations, repairs, replacements, remodelings and/or rebuildings of the franchised restaurant that will conform with the specification and standards set forth in the scope of work previously provided by Lessor, as franchisor (hereinafter referred to herein as the "Remodel Work"), the completion of which was material consideration for and inducement of the Lessor, as franchisor, to enter into the Franchise Agreement.
Lessee further acknowledges and agrees to the following: (i) to complete the Remodel Work in accordance with the Franchise Agreement; and (ii) that all work associated with the Remodel Work, including, without limitation, all demolition and/or construction work, shall be completed in compliance with all Regulations.
Without limiting the foregoing, Lessee agrees to provide the Lessor with the following:
- a. at the time of submittal of the construction plans and specifications (the "Plans") of the Remodel Work to Lessor for approval, a certificate, on a form to be provided by Lessor, from an architect, licensed in the State where the Premises are located ("Architect"), certifying that the Plans comply with (i) the requirements of Title III of the Americans With Disabilities Act of 1990 ("ADA") (ii) the Americans With Disabilities Act Accessibility Guidelines 1991 ("ADAAG") which is a part of the ADA; (iii) the 2010 ADA Standards; and (iv) all state and local building codes including any disabilities related statutes or codes (collectively, the "Codes") in the applicable jurisdiction where the Premises are located; and
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, the Deferred Remodel Addendum outlines the franchisee's obligation to complete a remodel of their Burger King restaurant at a later date. Specifically, it addresses situations where an existing Burger King location requires renovations, repairs, replacements, remodeling, or rebuilding to meet current brand standards, but the franchisee is not immediately undertaking these changes. The completion of these Remodel Work is a material consideration for Burger King to enter into the Franchise Agreement.
The addendum ensures that the franchisee acknowledges and agrees to complete the remodel work according to the Franchise Agreement. This includes adhering to specifications and standards set forth in the scope of work provided by Burger King. The franchisee is also responsible for ensuring that all remodel work complies with applicable regulations, including providing Burger King with an architect's certificate confirming compliance with the Americans With Disabilities Act (ADA) and all state and local building codes.
Furthermore, the Deferred Remodel Addendum may impact the franchisee's ability to transfer their franchise interest. Burger King may withhold consent for any proposed transfer until the remodel is completed. Failure to comply with the Remodel Agreement constitutes a default under the Franchise Agreement and may lead to termination of the agreement. This addendum ensures Burger King maintains brand standards and protects the integrity of the Burger King system.