factual

What sections of the Burger King Franchise Agreement are deleted and redesignated by this addendum?

Burger_King Franchise · 2025 FDD

Answer from 2025 FDD Document

other than with the consent of BKC, except as a result of circumstances beyond FRANCHISEE'S reasonable control (such as lack of electrical power, weather conditions, earthquakes, strikes and the like) and FRANCHISEE diligently undertakes to resume operations after the reason for cessation has been abated.

    1. Subsection (3) of Section 18.B of the Franchise Agreement is hereby deleted in its entirety and replaced by the following:
    • (3) If the parties do not enter into a Successor Franchise Agreement, FRANCHISEE agrees to immediately upon termination or expiration of this Agreement, make such removals or changes in signs and the Premises as BKC shall request, so as to effectively distinguish the Premises and the Franchised Restaurant from its former appearance and from any other BURGER KING Restaurant. In the event FRANCHISEE fails to make the changes, FRANCHISEE consents to BKC entering the Premises (which includes the Franchised Restaurant) to make non-structural changes at FRANCHISEE'S expense. FRANCHISEE shall obtain, on behalf of itself and BKC, the right to enter the Premises to effectuate the purposes of this subsection (3).
    1. Subsection K. of Section 21 of the Franchise Agreement is hereby deleted in its entirety and replaced by the following:

21. K. Entire Agreement

This Agreement, including the Key Contract Data page to this Agreement, together with this Addendum, the Target Reservation Agreement, the Franchise Application, Contribution Agreement, if applicable, submitted by FRANCHISEE to BKC upon which BKC is relying in granting this franchise, constitute the entire agreement of the parties and supersede all prior agreements, negotiations, commitments, representations and undertakings of the parties with respect to the subject matter of this Agreement.

By entering into this Addendum, you expressly consent to transact business with BKC electronically and that, consistent with the Uniform Electronic Transactions Act, and all other applicable state and federal laws, this Addendum may be executed by electronic signatures. The parties to this Addendum agree that the parties' electronic signatures are intended to authenticate this writing and to have the same force and effect as the use of manual signatures and an electronically signed version of this Addendum shall constitute an original for all purposes.

This Addendum is hereby executed by the parties effective on the date indicated above.

BURGER KING COMPANY LLC

By: Print Name: Its: FRANCHISEE:

EXHIBIT "A"

Description of Franchised Restaurant

Subject to any and all reservations, restrictions, easements, rights of way, limitations and conditions of record, if any.

EXHIBIT "B"

Material Features of Franchised Restaurant

EXHIBIT "C"

Legal Description of Premises

Subject to any and all reservations, restrictions, easements, rights of way, limitations and conditions of record, if any.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)

What This Means (2025 FDD)

According to the 2025 Burger King Franchise Disclosure Document, several sections of the Franchise Agreement are modified by addenda. Specifically, subsection (3) of Section 18.B is deleted and replaced, detailing Burger King's rights to alter the premises if a Successor Franchise Agreement isn't reached. Subsection K of Section 21, concerning the Entire Agreement, is also deleted and replaced, clarifying what constitutes the complete agreement between Burger King and the franchisee. Additionally, subsection (26) of Section 18.A is deleted and replaced, outlining the causes for default and termination related to compliance with various agreements. Exhibit B of the agreement is deleted and replaced with an updated exhibit.

Furthermore, the Replacement Franchise Addendum modifies the original agreement by replacing Section 1, which covers the franchise grant, term, and location. It also replaces Section 2, which pertains to the franchise fee and initial obligations. A sentence is added to Section 5.B.1 regarding repair and maintenance. Section 22 is amended to add a definition for "Managing Director".

These changes are important for prospective franchisees as they clarify the conditions under which Burger King can modify the restaurant's appearance after the agreement, what constitutes the entire agreement, and the grounds for default. The addendum also updates the terms regarding franchise grants, fees, and maintenance responsibilities. Franchisees should carefully review these sections to understand their obligations and Burger King's rights throughout the franchise term.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.