Under what circumstances does the agreement become null and void for a Burger King franchisee, specifically regarding Un-Owned Restaurants?

According to Burger King's 2025 Franchise Disclosure Document, the agreement with a franchisee can become null and void, but only with specific regard to 'Un-Owned Restaurants.' These are restaurants that the franchisee does not yet own or operate at the time of signing the agreement, but are in various stages of potential acquisition or development, such as being under a Target Reservation Agreement, having an assigned A# by BKC, being under construction, subject to a purchase agreement, or being discussed as re-franchising candidates.

The agreement specifies that if any of these 'Un-Owned Restaurants' do not eventually open and operate under a Burger King Restaurant Franchise Agreement in the franchisee's name during the term of the agreement, then the agreement becomes null and void, but only for those specific 'Un-Owned Restaurants.' This means that the franchisee is no longer obligated to develop or operate those particular locations, and Burger King has no further claim on them under that agreement.

However, it is important to note that this termination only applies to the 'Un-Owned Restaurants' that fail to materialize. The agreement remains in full force and effect for any 'Participating Restaurants' (existing restaurants included in the agreement) and any 'Un-Owned Restaurants' that do successfully open and operate under a franchise agreement. This ensures that the franchisee's obligations and Burger King's rights regarding the operating restaurants are not affected by the failure to launch other potential locations.