Under what circumstances can Burger King terminate the development agreement if a Cumulative Opening Target is not achieved?

According to Burger King's 2025 Franchise Disclosure Document, Burger King Company (BKC) can terminate the development agreement if construction has not been performed in substantial compliance with the Approved Plans and Specifications, and this non-compliance is not cured within a commercially reasonable amount of time. This means that even if a developer meets the required number of restaurant openings, Burger King retains the right to terminate the agreement if the construction quality or adherence to approved plans is significantly lacking and not corrected promptly.

This provision underscores the importance of adhering to Burger King's construction standards and specifications. A prospective franchisee needs to ensure that their construction plans are meticulously followed and any deviations are promptly addressed to avoid potential termination of the development agreement. The term 'commercially reasonable amount of time' is subjective and could be a point of negotiation or clarification during the agreement phase.

This clause is significant because it protects Burger King's brand integrity and operational standards. By maintaining strict control over construction quality, Burger King aims to ensure a consistent customer experience across all its locations. For a developer, this means that simply meeting the numerical targets for restaurant openings is not sufficient; maintaining high construction standards is equally critical to maintaining a good standing with the franchisor.