Under what condition can Burger King terminate the DMA Investment Spending Agreement?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything herein to the contrary, BKC may terminate this agreement if less than 66.7% of the adjusted population base of BURGER KING® restaurants in the DMA, as determined by BKC from time to time (the "DMA Restaurant Population Base") agree to participate in this DMA Investment Spending Agreement.
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, Burger King may terminate the DMA Investment Spending Agreement if they do not receive the Minimum Required Commitment. The Minimum Required Commitment is defined as at least 66.7% of the adjusted population base of Burger King restaurants in the Designated Market Area (DMA). This adjusted population base is determined by Burger King from time to time and is referred to as the DMA Restaurant Population Base.
This means that a Burger King franchisee's participation in the DMA Investment Spending Program is contingent on a certain level of participation from other franchisees within the same DMA. If less than 66.7% of the Burger King restaurants in the DMA agree to participate in the program, Burger King reserves the right to terminate the agreement.
This condition protects Burger King from having to implement a marketing program without sufficient funding and participation from its franchisees. It also ensures that franchisees are not obligated to contribute to a program that lacks broad support within their DMA. Prospective franchisees should inquire about the current participation rate in their DMA to assess the likelihood of the Investment Spending Program moving forward.