Under what condition will the Lessor consent to an assignment of the Burger King lease?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
Providing Lessee remains liable for all its obligations under this Lease, Lessor shall consent to an assignment of this Lease to an individual, partnership or corporation to which the Franchise Agreement has been assigned.
§13.3 ASSUMPTION BY ASSIGNEE. An assignment made with Lessor's consent or as otherwise permitted shall not be effective until Lessee delivers to Lessor an executed counterpart of such assignment containing an agreement, in recordable form, executed by the assignor and the proposed assignee, in which the assignee assumes the performance of the obligations of the assignor under this Lease to the Original Term Expiration Date.
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 Lessor will consent to an assignment of the lease if the Lessee remains liable for all obligations under the lease and the Franchise Agreement has been assigned to the individual, partnership, or corporation. This means that even after the lease is assigned, the original franchisee remains responsible for fulfilling all the terms and conditions of the lease agreement.
To formalize the assignment, the franchisee must provide the Lessor with a copy of the assignment agreement. This agreement needs to be signed by both the assignor (the original franchisee) and the assignee (the new party taking over the lease). The agreement must also include a clause where the assignee commits to fulfilling all the obligations of the lease from the assignment date until the original lease expiration date.
This requirement ensures that Burger King can maintain control over its real estate and that franchisees are not able to easily transfer their lease obligations to parties that may not be suitable or financially stable. It also protects Burger King's interests by ensuring that someone is always responsible for the lease, even if the franchise changes hands.