Under what condition can Burger King terminate the Investment Spending Program Agreement?

According to Burger King's 2025 Franchise Disclosure Document, Burger King Company LLC (BKC) can terminate the Investment Spending Program Agreement if it does 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 is determined by BKC from time to time, and is referred to as the DMA Restaurant Population Base.

This means that if a sufficient number of Burger King franchisees in a specific DMA do not agree to participate in the DMA Investment Spending Agreement, Burger King reserves the right to cancel the program for that area. The threshold for participation is set at 66.7% of the adjusted restaurant population base.

For a prospective franchisee, this condition highlights the importance of understanding the level of participation and support for marketing programs within their DMA. If a new franchisee enters a market where participation is low, there is a risk that the Investment Spending Program could be terminated, potentially affecting local marketing efforts and the franchisee's business. It is important to note that the agreement is only binding if the Minimum Required Commitment is reached.