exception

What effect do statements, questionnaires, or acknowledgments signed by a Burger King franchisee have on waiving claims under state franchise law or disclaiming reliance on statements made by the franchisor?

Burger_King Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of BKC. This provision supersedes any other term of any document executed in connection with the franchise.
    1. Each provision of this Amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently without reference to this Amendment.

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, several amendments address the effect of signed documents on a franchisee's rights under state franchise laws. Specifically, for franchisees in California, Maryland, Minnesota, North Dakota, Washington and Illinois, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law. This includes claims related to fraud in the inducement, nor can these documents disclaim reliance on statements made by Burger King or its representatives. This provision takes precedence over any conflicting terms in other franchise documents.

These protections are included as amendments to the franchise agreements and target reservation agreements required by the franchise laws of those specific states. The amendments clarify that the representations made in the franchise agreements are not intended to act as a release, estoppel, or waiver of any liability incurred under the respective state's franchise laws. Furthermore, any release signed by the developer (franchisee) will not apply to claims made under those state franchise laws.

These stipulations ensure that Burger King franchisees in these states retain their rights and protections under state franchise laws, regardless of any statements they may sign during the commencement of the franchise relationship. However, each provision is effective only to the extent that the jurisdictional requirements of the relevant state's franchise law are met independently, without relying on the amendment itself. This means that the underlying state law must provide the basis for the protection, and the amendment serves to reinforce that protection within the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.