Under the Burger King DMA Program, is the Franchisee obligated to follow all policies of BKC?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE acknowledges (i) that its obligations contained herein are in addition to its obligations under FRANCHISEE's Franchise Agreement(s) and any other agreements between FRANCHISEE and BKC and no amounts due under this Agreement will be covered under any Term Sheet, Triage Agreement, Financial Assistance Agreement, or any other agreement of any type or kind by which any monetary obligation of FRANCHISEE is waived, deferred or otherwise altered; (ii) that with respect to the DMA Programs, FRANCHISEE is obligated to follow all policies of BKC, (iii) this Agreement covers funding for the DMA Programs for the Term; and (iv) and the specific marketing tactics for the DMA Programs will be determined by a minimum of 66.7% of the Owners who agree to make the Additional Contributions.
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, franchisees participating in the Designated Market Area (DMA) program are obligated to adhere to Burger King Company's (BKC) policies regarding these programs. This obligation is in addition to any other obligations outlined in the Franchise Agreement or other agreements between the franchisee and BKC.
This means that a Burger King franchisee must comply with all BKC policies related to the DMA programs. These policies could cover various aspects of the marketing programs, such as branding, advertising standards, promotional activities, and operational procedures. The specific marketing tactics for the DMA Programs will be determined by a minimum of 66.7% of the Owners who agree to make the Additional Contributions.
It is important for prospective franchisees to understand that these DMA program obligations are separate from, and in addition to, the standard requirements of their Franchise Agreement. Franchisees should carefully review all BKC policies related to DMA programs to ensure they can fully comply. Failure to comply with these policies could result in penalties or other consequences as defined by Burger King.