Under what condition can Burger King terminate an IS Program?

If you have a Majority Clause provision in your Franchisee Agreement, you must participate in an IS Program if 66.7% or more of the eligible franchised Restaurants and Restaurants we own in the DMA (as determined by us in our discretion) elect to participate in the IS Program. You will participate in the Program under exactly the same IS contract terms and conditions as the other Franchisees in your DMA. The obligation to participate in an annual IS Program under these circumstances exists for the entire term of the Franchise Agreement. (A copy of the IS contract forms are attached as Exhibit I1 to this disclosure document). We have also included in Exhibit I1 those forms you would sign if the Franchisees in your DMAs decided to investment spend for a special purpose, like a sports sponsorship, or when there is no IS program in effect. The Majority Clause provision discussed above would also apply in these circumstances.

We are not obligated to expend any sums on advertising in the vicinity of your Restaurant. We typically advertise by DMA or on a national basis, whichever we deem more appropriate. For a new Restaurant and certain remodeled or re-opened Restaurants, a portion of contribution to the Fund will be made available to reimburse you for certain expenses of a grand opening promotion, in accordance with our policy at the time of opening. (Franchise Agmt. - Sec. 6.D).

If you want to use your own advertising or promotional materials, you must obtain our approval as to media type and format, conduct the advertising or promotion in a dignified manner, and conform to all federal, state and local laws, rules, regulations, standards and guidelines. The advertising and promotional elements must also meet our standards and requirements. You must submit samples of proposed advertising and promotional plans and materials to us for approval before you use them. You may not use any advertising or promotional plans or materials without our prior written approval, and must remove previously approved materials if we have ceased using or subsequently disapproved the advertising or promotional plans or materials, (Franchise Agmt. - Sec. 5.J). Unless we otherwise approve, you may not use any of the BURGER KING® Marks on any website, or other social media or as part of a domain name or other electronic mail address. (Franchise Agmt. – Sec. 11.A.7)

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 62–71)