Under what circumstances can Burger King terminate the Development Agreement immediately upon written notice to the Developer?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
struction Plans comply with applicable ordinances, ADA requirements, building codes and permit requirements and with lease requirements and restrictions. Developer shall obtain and use only registered architects, registered engineers, and professional and licensed contractors who demonstrate to BKC's reasonable satisfaction the ability to meet BKC's reasonable quality standards (as determined by BKC in its reasonable discretion), in each case, to prepare the Construction Plans (including surveys and site foundation plans), to adapt the Construction Plans to applicable local or state laws, regulations or ordinances, and to construct the Franchised Restaurant. Developer shall bear all costs and expenses incurred in connection with the preparation of all Construction Plans, including the costs and expenses incurred for any plans containing deviations or modifications from BKC's standard plans and specifications. For the avoidance of any doubt, the Franchised Restaurant may not open if construction has not been performed in substantial compliance with the Construction Plans as approved by BKC. BKC may terminate this Agreement if such non-compliance is not cured within a commercially reasonable amount of time.
- 4.5.5 Developer shall complete the construction of the Franchised Restaurant and commence operation of the Franchised Restaurant by no later than the Opening Deadline.
ARTICLE V: DEPOSIT
Franchise Fee Deposit. As consideration for the rights granted herein, Developer shall, upon execution of this Agreement, pay to BKC Five Thousand Dollars ($5,000.00) (the "Franchise Fee Deposit"). The Franchise Fee Deposit is deemed fully earned and non-refundable (except as set forth in Section 1.4.3) upon execution of this Agreement by BKC. The Franchise Fee Deposit will be applied to offset the franchise fee of the Franchised Restaurant.
ARTICLE VI: DEFAULT
- 6.1 Ev
Source: Item 23 — RECEIPTS (FDD pages 127–995)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, there are several events that would allow Burger King to immediately terminate the Development Agreement with written notice to the Developer. These events are classified as 'Events of Default'.
Burger King can terminate the agreement if the Developer fails to develop and open the Franchised Restaurant by the Opening Deadline. Burger King can also terminate the agreement if the Developer breaches or fails to comply with any provision of the Development Agreement, including allowing an A# to expire. Additionally, Burger King can terminate the agreement if the Developer knowingly and intentionally submits applications containing false or misleading statements or omits any material fact.
However, in the event of failing to meet the opening deadline, the Developer has an opportunity to cure the default. The developer can open the Franchised Restaurant within thirty (30) days from the Opening Deadline, or pay Burger King an additional Ten Thousand Dollar ($10,000) deposit which shall be considered a 'Franchise Fee Deposit'. If the developer pays the deposit, Burger King will extend the Opening Deadline for the Franchised Restaurant to a date which shall be six (6) months from the original Opening Deadline. Failure to open the Franchised Restaurant after expiration of the Extended Cure Period shall result in the immediate termination of this Agreement by Burger King without further notice, in which event Developer shall forfeit all amounts paid under this Agreement.