What express or implied representations or warranties does Burger King disclaim regarding purchased assets, premises, or the transaction?
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.
Buyer agrees to assume all responsibility for any and all retail sales taxes generated by the transfer of the within mentioned Purchased Assets, to promptly pay same when due to the appropriate governmental entity or entities, and to hold Seller harmless as against any and all claims or actions pertaining to same.
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 assets are sold "AS IS, WHERE IS" and 'WITH ALL DEFECTS.' Burger King makes no express or implied representations or warranties, including those of merchantability or fitness for a particular purpose, except as expressly provided in the agreement.
This means that a franchisee is purchasing the assets in their current condition and location, with all existing faults. Burger King is not guaranteeing that the assets are suitable for a specific purpose or of a certain quality, except for any warranties explicitly stated in the Bill of Sale. The franchisee is responsible for assessing the condition of the assets and determining their suitability for the intended use.
However, Burger King will transfer any existing warranties which are transferable with regards to the Purchased Assets. The buyer also agrees to assume responsibility for all retail sales taxes generated by the transfer of the purchased assets and to hold Burger King harmless against any claims pertaining to these taxes. This disclaimer is a significant point for potential franchisees to consider, as it places the onus on them to conduct thorough due diligence on the assets before purchase.