Under what circumstances can a Burger King franchisee cease operating a Co-Branded Business on the Premises without Burger King Corporation's (BKC) consent?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
- (29) If applicable, FRANCHISEE ceases to operate any Co-Branded Business on the Premises, 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.
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, a franchisee can cease operating a Co-Branded Business on the premises without Burger King Corporation's (BKC) consent under specific circumstances. This is allowed if the cessation results from circumstances beyond the franchisee's reasonable control.
Specifically, these circumstances include events such as a lack of electrical power, adverse weather conditions, earthquakes, strikes, or similar events that are outside of the franchisee's ability to prevent or manage. However, the franchisee must also diligently undertake efforts to resume operations after the reason for the cessation has abated. This means the franchisee cannot simply cease operations and remain closed; they must actively work to reopen the Co-Branded Business as soon as the issue is resolved.
This provision protects Burger King franchisees from being penalized for temporary closures due to unforeseen and uncontrollable events, while also ensuring that they make reasonable efforts to minimize any disruption to the operation of the Co-Branded Business. It is important for prospective franchisees to understand these conditions and their obligations to resume operations promptly to maintain compliance with the franchise agreement.