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Under what circumstances will a Burger King lease terminate if the Master Lease is terminated?

Q: Under what circumstances will a Burger King lease terminate if the Master Lease is terminated?

- 3. The Lease is subject. and subordinate to the Master Lease. If the Master Lease is terminated for any cause whatsoever (other than by reason of the willful default of Lessor with respect to Lessor's obligations as tenant under the Master Lease during the Term of the Lease), Lessee shall promptly vacate and surrender the Premises to Lessor and this Lease shall terminate as of the date of termination of the Master Lease and Lessor shall have no liability and/or obligation to Lessee for the termination of the Lease. Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)

Burger_King Franchise · 2025 FDD

Answer from 2025 FDD Document

The Lease is subject. and subordinate to the Master Lease.

If the Master Lease is terminated for any cause whatsoever (other than by reason of the willful default of Lessor with respect to Lessor's obligations as tenant under the Master Lease during the Term of the Lease), Lessee shall promptly vacate and surrender the Premises to Lessor and this Lease shall terminate as of the date of termination of the Master Lease and Lessor shall have no liability and/or obligation to Lessee for the termination of the Lease.

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, the lease between Burger King Company LLC (as Lessor) and the franchisee (as Lessee) is subject to a Master Lease. This Master Lease exists between Burger King Company LLC and a Master Landlord.

According to the FDD, if the Master Lease is terminated for any reason, the franchisee's lease will also terminate. The exception to this is if the Master Lease termination is due to the willful default of Burger King Company LLC's obligations as the tenant under the Master Lease. In the event of a Master Lease termination (not due to Burger King's willful default), the franchisee is required to promptly vacate the premises, and Burger King Company LLC has no liability or obligation to the franchisee because of the lease termination.

This clause protects Burger King in the event that the Master Lease is terminated due to circumstances outside of Burger King's control. However, it places the risk on the franchisee, who could lose their location if Burger King loses its Master Lease for reasons other than its own willful default. A prospective franchisee should seek clarification regarding the specific conditions under which the Master Lease could be terminated and what protections, if any, the franchisee has in such a scenario.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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