When transferring a Burger King franchise, what must the Franchisee (and, if applicable, each Owner) execute?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) The Franchisee (and, if applicable, each Owner) must execute a general release, in a form acceptable to BKC, of any and all claims against BKC, its Affiliates, and their respective officers, directors, agents, and employees;
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, when transferring a franchise, the franchisee (and each owner, if applicable) must execute a general release. This release, in a form acceptable to Burger King Corporation (BKC), waives any and all claims against BKC, its affiliates, and their respective officers, directors, agents, and employees. This requirement ensures that upon transferring the franchise, the franchisee relinquishes any legal recourse against Burger King related to the franchise agreement.
In addition to the general release, the document states that the franchisee must meet other obligations when transferring a Burger King franchise. The transferor must pay a transfer fee to cover Burger King's expenses for reviewing the proposed transfer. If the transferee is not an existing approved Burger King franchisee, the transferor must also pay a new franchisee training fee. The transferee, along with their Managing Owner, Managing Director, and Restaurant Manager, must complete any applicable orientation and training programs required by BKC at the time of the transfer, at the transferee's expense.
However, the FDD also includes an amendment specific to Burger King franchises offered and sold in the State of California. This amendment states that California Corporations Code Section 31512 provides that any condition purporting to bind any person acquiring any franchise to waive compliance with any provision of that law or any rule or order thereunder is void. Therefore, to the extent required by such laws, a franchisee in California shall not be required to execute a general release.