What specific subsections of the Burger King franchise agreement concerning assignment, conditions, and limitations are deleted and replaced?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6. LIMITATIONS OF FRANCHISE. Subsection 11.A.(1) of the Agreement is hereby deleted in its entirety and replaced with the following:
A. Trademarks, Trade Names, Service Marks and Trade Secrets
- (1) Franchisee acknowledges that ownership of all right, title and interest to the BURGER KING System and the BURGER KING Marks, are and shall remain vested solely in BKC and Franchisee disclaims any right or interest therein or the good will derived therefrom. All good will associated with the BURGER KING Marks is the sole property of BKC. Franchisee agrees that all materials loaned or otherwise made available to it and all disclosures made to Franchisee and not to the general public by or at the direction of BKC or its predecessor at any time before or during the Term of this Agreement relating to the BURGER KING System, including the MOD Manual in its entirety, financial information marketing strategy and marketing programs are to be considered trade secrets of BKC for purposes of this Agreement and shall be kept confidential and used by Franchisee only in connection with the operation of the Franchised Restaurant and other franchised BURGER KING Restaurants. Franchisee agrees not to divulge any of the trade secrets to any person other than its employees and then only to the extent necessary for the operation of the Franchised Restaurant and, specifically, that Franchisee will not, nor permit anyone to, reproduce, copy or exhibit any portion of the MOD Manual or any other trade secrets of BKC. At BKC's request, Franchisee shall require each Owner and Managing Director to execute an agreement similar in substance to this Section in a form acceptable to BKC and naming BKC as a third party beneficiary with the independent right to enforce such agreement.
- 7. ASSIGNMENT; CONDITIONS AND LIMITATIONS. Subsections 15.F.(3) and 15.F.(7) of the Agreement are hereby deleted in their entirety and replaced with the following:
F. Conditions of Consent
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, specific subsections of the franchise agreement related to limitations and assignment are deleted and replaced. Specifically, subsection 11.A.(1) regarding limitations of the franchise is deleted and replaced in its entirety. This subsection concerns trademarks, trade names, service marks, and trade secrets, emphasizing that all rights to the Burger King system and marks remain with BKC. Franchisees must acknowledge this and maintain the confidentiality of trade secrets, including the MOD Manual, financial information, and marketing strategies. Franchisees must also ensure their employees and managing directors agree to similar confidentiality terms.
Additionally, subsections 15.F.(3) and 15.F.(7) of the Burger King franchise agreement, which pertain to assignment, conditions, and limitations, are also deleted and replaced in their entirety. These subsections fall under the broader category of 'Conditions of Consent' related to assignment. This indicates that the conditions under which a franchisee can transfer or assign their franchise rights are being modified by Burger King.
These changes suggest that Burger King is updating its policies regarding brand protection, trade secret management, and the transfer of franchise ownership. Prospective franchisees should carefully review the new language in these sections to understand their obligations and rights concerning confidentiality, use of Burger King's intellectual property, and the process for assigning or transferring their franchise.