Under what conditions will the MTRA or TRA deposit be non-refundable for a Burger King franchise?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the MTRA and TRA the deposit will be non-refundable, unless you decide not to exercise your option to develop a Restaurant in the Target Area that we have proposed to you for development either for ourselves or for a third party. In this case, we can terminate the TRA or MTRA, as applicable, and refund your remaining deposit. Failure to utilize a Target Area due to 1) our disapproval of the Site within the Target Area or disapproval of a Target Area in an MTRA; 2) significant real estate constraints; 3) development of a neighboring restaurant rendering the Target Area economically unviable; or 4) failure to obtain permits, will result in the deposit being applied to a substitute Target Area.
Source: Item 5 — INITIAL FEES (FDD pages 28–32)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, the MTRA (Multiple Target Reservation Agreement) and TRA (Target Reservation Agreement) deposits are generally non-refundable. These agreements are used when a franchisee wants to specify target areas to search for potential restaurant sites. The TRA deposit is $5,000, while the MTRA deposit is $10,000 multiplied by the number of committed restaurant openings.
However, the deposit will be refunded if the franchisee decides not to exercise their option to develop a restaurant in a target area proposed by Burger King for either their own development or for a third party. In this specific instance, Burger King can terminate the MTRA or TRA and refund the remaining deposit.
If the failure to utilize a target area is due to Burger King's disapproval of the site or target area, significant real estate constraints, development of a neighboring restaurant making the area economically unviable, or failure to obtain permits, the deposit will be applied to a substitute target area instead of being refunded. This means the franchisee can continue searching for an alternative location without losing the deposit, but they won't get the cash back.