Under what conditions is the Deferred Remodel Addendum executed for a Burger King franchise?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
IF BKL EXECUTED PRIOR TO REMODEL / DEFERRED REMODEL Lessee acknowledges that Lessee, as franchisee, has, contemporaneously with the execution of this Lease, executed that certain Franchise Agreement with the Lessor, as franchisor, for the operation of the BURGER KING® restaurant on the Premises (the "Franchise Agreement"), which requires the franchisee to complete certain renovations, repairs, replacements, remodelings and/or rebuildings of the franchised restaurant that will conform with the specification and standards set forth in the scope of work previously provided by Lessor, as franchisor (hereinafter referred to herein as the "Remodel Work"), the completion of which was material consideration for and inducement of the Lessor, as franchisor, to enter into the Franchise Agreement.
Lessee further acknowledges and agrees to the following: (i) to complete the Remodel Work in accordance with the Franchise Agreement; and (ii) that all work associated with the Remodel Work, including, without limitation, all demolition and/or construction work, shall be completed in compliance with all Regulations.
Without limiting the foregoing, Lessee agrees to provide the Lessor with the following:
- a. at the time of submittal of the construction plans and specifications (the "Plans") of the Remodel Work to Lessor for approval, a certificate, on a form to be provided by Lessor, from an architect, licensed in the State where the Premises are located ("Architect"), certifying that the Plans comply with (i) the requirements of Title III of the Americans With Disabilities Act of 1990 ("ADA") (ii) the Americans With Disabilities Act Accessibility Guidelines 1991 ("ADAAG") which is a part of the ADA; (iii) the 2010 ADA Standards; and (iv) all state and local building codes including any disabilities related statutes or codes (collectively, the "Codes") in the applicable jurisdiction where the Premises are located; and
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, a Deferred Remodel Addendum is executed when Burger King, as the lessor, executes it prior to the remodel. In this scenario, the franchisee acknowledges that they have also executed a Franchise Agreement with Burger King, as the franchisor. This agreement mandates that the franchisee complete specific renovations, repairs, replacements, remodelings, or rebuildings to meet the standards set by Burger King. The completion of this "Remodel Work" is a significant factor that influenced Burger King to enter into the Franchise Agreement.
The franchisee is obligated to complete the Remodel Work according to the Franchise Agreement and ensure that all work complies with regulations. This includes providing Burger King with a certificate from a licensed architect confirming that the construction plans comply with the Americans With Disabilities Act of 1990 (ADA), the Americans With Disabilities Act Accessibility Guidelines 1991 (ADAAG), the 2010 ADA Standards, and all state and local building codes.
Furthermore, the franchisee must complete the RTF2 Remodel of the Franchised Restaurant as per the Remodel Agreement. Completing the RTF2 Remodel is a key consideration for Burger King to enter into the Franchise Agreement and the Deferred Remodel Addendum. Until the RTF2 Remodel is completed, Burger King may withhold consent to any proposed transfer of interest in the franchise, as outlined in the Franchise Agreement. Failure to comply with the Remodel Agreement can result in a default under the Franchise Agreement.