Under the Burger King Restaurant Franchise Agreement (Individual/Owner-Operator), what commitment must one of the named Franchisees make?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
BURGER KING Restaurant Franchise Agreement (Individual/Owner-Operator). You must meet our qualifications and successfully complete our training program described in Item 11 of this disclosure document. One of the named Franchisees must contractually agree to participate personally in the direct "on-premises" operation of the franchised business (Operating Partner), live near the Restaurant (and any other BURGER KING Restaurant(s) operated by the Franchisee) and must devote full time and best efforts to the day-to-day operation of the Restaurant(s) with no operational or management commitment in other businesses (except other BURGER KING Restaurants). None of the individuals may own, operate or have any interest in any hamburger business except other BURGER KING Restaurants. In addition, the Operating Partner must retain a minimum of 50% equity ownership in the business, including profits. If we consent to your assignment of the Franchise Agreement to an operating company approved by us, the named Franchisees will retain personal liability to us for all obligations under the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 78–80)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, under the Burger King Restaurant Franchise Agreement (Individual/Owner-Operator), one of the named franchisees must contractually agree to participate personally in the direct "on-premises" operation of the franchised business as an Operating Partner. This individual must live near the Burger King Restaurant and devote their full time and best efforts to the day-to-day operation of the restaurant.
This Operating Partner cannot have any operational or management commitments in other businesses, except for other Burger King Restaurants. Furthermore, the Operating Partner is prohibited from owning, operating, or having any interest in any other hamburger business, again with the exception of other Burger King Restaurants.
In addition to these operational requirements, the Operating Partner must retain a minimum of 50% equity ownership in the business, including profits. Even if Burger King consents to the assignment of the Franchise Agreement to an operating company, the named franchisees will still retain personal liability to Burger King for all obligations under the Franchise Agreement.