What is required to obtain Site Approval from Burger King before constructing a new Franchised Restaurant?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
edent to the development of a Franchised Restaurant, Developer must apply for, meet, and continuously maintain BKC's then-current operational, financial, credit, legal and other criteria for developing and operating a new Franchised Restaurant as set forth in BKC's then-current North America Franchise Approval and Expansion Policy (herein, "Franchise Approval") applicable to all franchisees of BKC in the U.S. Developer understands and accepts that BKC may change its criteria for Franchise Approval as it applies to all franchisees of BKC during the term of this Agreement. Failure to meet the requirements for operational, financial, credit and/or legal approval shall constitute grounds for, among other things, BKC refusing to grant Franchise Approval, Site Approval (as hereinafter defined), or withdrawing an approval already granted. Any failure by Developer to qualify for Franchise Approval for any period of time shall not extend, modify or reduce the development obligations of Developer under Article III, and if such failure results in Developer defaulting on its development obligations under Article III, BKC may, in its sole discretion, exercise its rights under Section 6.1.
4.2 Site Approval.
- 4.2.1 Developer must apply for and obtain written site approval from BKC ("Site Approval") for each Franchised Restaurant to be developed under this Agreement. Developer understands and acknowledges that Site Approval must be obtained in addition to the permits required to construct, open and operate the Franchised Restaurants. The Site Approval application shall contain detailed information regarding the site and the market around the site, and Developer shall use the application format from time to time adopted by BKC applicable to the U.S. Site Approval is a prerequisite to authorization to construct a new Franchised Restaurant at a particular location. Developer acknowledges that Site Approval can be granted only by means of a written approval duly executed by an authorized representative of BKC and no other approval, whether oral or written, shall be effective or binding on BKC. Developer's receipt of BKC's written notice of Site Approval only shall serve to constitute approval of a site. Site Approval does not assure that a Franchise Agreement will be executed.
- 4.2.2 Developer agrees that BKC may, in its sole discretion, deny Site Approval for any site if, in BKC's sole discretion, the site does not meet BKC's criteria for Site Approval. If Developer enters into any legally binding commitment with respect to a potential site before BKC has granted Site Approval, then Developer shall bear the entire risk of loss or damage resulting from a subsequent decision of BKC not to grant Site Approval. Developer agrees to fully comply with BKC's Procedures for Resolving Development Disputes ("Jennifer") (the "ADR Procedures") provided to Developer via BKC's intranet site (currently known as BK Gateway), as modified by BKC from time to time. Developer agrees to participate and cooperate in any mediation, arbitration or other legal action conducted pursuant to the ADR Procedures in the event an objection is received by BKC from another franchisee in connection with the development of a site.
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, a developer must apply for and obtain written Site Approval from Burger King before developing a franchised restaurant. This Site Approval is in addition to any permits required to construct, open, and operate the restaurant. The Site Approval application must contain detailed information regarding the site and the market around it, using the application format adopted by Burger King for use in the U.S. Site Approval is a prerequisite to authorization to construct a new franchised restaurant at a particular location. Burger King grants Site Approval via a written approval executed by an authorized representative of Burger King. No other approval, whether oral or written, is effective or binding on Burger King.
Within ninety (90) days following Burger King's issuance of Site Approval, but before Burger King issues Construction Approval, the developer must submit written proof that they either own the approved site, have leased it for a term that, with renewal options, is not less than the initial term of the Developer Franchise Agreement, or have entered into a written agreement to purchase or lease the site on the terms provided. This proof includes executed copies of all leases and deeds, as well as all governmental approvals if the effectiveness of leases or deeds is conditioned upon them. Failure to provide this proof within the specified time results in automatic and immediate revocation of the Site Approval without notice from Burger King.
Prior to commencing construction of a new Franchised Restaurant, the developer must obtain from Burger King prior written architectural and design approval of the Developer's Approved Plans and Specifications (Construction Approval) as indicated by Burger King's issuance of a restaurant number for such Franchised Restaurant. The developer is responsible for procuring their own architectural and engineering services and all necessary approvals and permissions from the relevant governmental authorities and other third parties. The developer is responsible for constructing the new Restaurant in accordance with all applicable local, state, and federal laws, ordinances, codes, permits, and regulations.