In the Bill of Sale for a Burger King restaurant, what condition are the Purchased Assets sold in?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
THE BUYER AND SELLER HEREBY AGREE AND THE BUYER HEREBY ACKNOWLEDGES THAT THE PURCHASED ASSETS ARE SOLD IN AN "AS IS, WHERE IS" and 'WITH ALL DEFECTS" CONDITION AND, EXCEPT AS EXPRESSLY PROVIDED ABOVE, SELLER MAKES NO EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES, INCLUDING THOSE OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE PURCHASED ASSETS.
Seller agrees to transfer to Buyer any existing warranties which are transferable with regards to the Purchased Assets transferred herein.
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, the Purchased Assets, which include equipment, inventory, and POS systems, are sold in an "AS IS, WHERE IS" and 'WITH ALL DEFECTS' condition. This means that Burger King franchisees are acquiring these assets in their current state at the time of purchase, and they assume all risks and responsibilities for any existing defects or issues.
Burger King makes no express or implied representations or warranties regarding the merchantability or fitness for a particular purpose of the Purchased Assets, except as expressly provided in the Bill of Sale. However, Burger King will transfer any existing warranties that are transferable with regards to the Purchased Assets.
This "as is" condition is a common practice in franchise sales, as it allows for a more straightforward transaction where the buyer is responsible for assessing the condition of the assets and factoring that into the purchase decision. Prospective Burger King franchisees should carefully inspect the Purchased Assets and consider obtaining professional advice to evaluate their condition before completing the purchase.