Is there a prepayment penalty for Burger King loans under the Crown Your Career Program?

According to Burger King's 2025 Franchise Disclosure Document, franchisees purchasing restaurants under the Crown Your Career Program can prepay their loans without incurring a prepayment penalty. This is a significant benefit, as it provides franchisees with financial flexibility should they have the means to pay off the loan earlier than the agreed-upon term.

The Crown Your Career Program offers financing options that depend on factors such as the restaurant being purchased and the franchisee's creditworthiness. The loan terms are typically 10 years or less, and interest rates can be fixed or variable, influenced by factors like the loan term, amount, market rates, credit history, and whether the franchisee is leasing real estate from Burger King. The interest rates are intended to be the then-current U.S. Prime Rate published by the Wall Street Journal plus approximately 1% to 4% per annum; however, Burger King may change this rate at any time.

It is important to note that while there is no prepayment penalty, overdue amounts will bear interest at a rate of 2% per annum above the interest rate set out in the Promissory Note. Additionally, the loan is secured by all assets of the Burger King restaurant, and Burger King may require a personal guaranty from the franchisee and their spouse or partner. Defaulting on the loan can lead to acceleration of payments, repossession of collateral, and even termination of the franchise agreement, so franchisees should carefully consider their financial situation before entering into a loan agreement with Burger King.