Does the Burger King franchise agreement disclaim the representations made by BKC in the Franchise Disclosure Document furnished to the Developer?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement constitutes the entire agreement and understanding of the Parties with respect to the development of Franchised Restaurants and supersedes all prior negotiations, commitments, representations, warranties and undertakings of the Parties (if any) with respect to the development of Franchised Restaurants, whether written or oral. The Parties acknowledge that they are not relying upon any representations, warranties, conditions, agreements or understandings, written or oral, made by the Parties as their agents or representatives, except as herein specified. Nothing in this or in any related agreement, however, is intended to disclaim the representations BKC made in the Franchise Disclosure Document it furnished to Developer. Neither this Agreement nor any term or provision of it may be changed, waived, discharged, or modified other than in writing and signed by the Parties.
ARTICLE XIV: ACKNOWLEDGEMENT
- 14.1 Developer acknowledges that the success of the business venture contemplated by this Agreement involves substantial business risks and will be largely dependent upon the ability of Developer as an independent businessperson. Except as set forth in the Franchise Disclosure Document delivered to Developer, BKC expressly disclaims the making of, and Developer acknowledges not having received, any warranty or guaranty, expressed or implied, as to the potential volume, profits, or success of the business venture contemplated by this Agreement.
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 franchise agreement does not disclaim the representations made by BKC in the Franchise Disclosure Document (FDD) furnished to the Developer. Specifically, the agreement states that nothing within it or any related agreement is intended to disclaim the representations Burger King made in the FDD it provided to the Developer. This ensures that the Developer can rely on the information provided in the FDD when making their investment decision.
This provision is crucial for prospective Burger King franchisees as it protects them from potential discrepancies between what is presented in the FDD and what is stated in the franchise agreement. Franchisees can hold Burger King accountable for the representations made in the FDD, which includes important details about the franchise system, fees, obligations, and financial performance.
However, the Burger King franchise agreement also includes an acknowledgement that the success of the business venture involves substantial business risks and will largely depend on the Developer's abilities as an independent businessperson. Except as set forth in the Franchise Disclosure Document delivered to Developer, BKC expressly disclaims the making of, and Developer acknowledges not having received, any warranty or guaranty, expressed or implied, as to the potential volume, profits, or success of the business venture contemplated by this Agreement. This means that while Burger King stands by the representations in the FDD, it does not guarantee the franchisee's financial success.
Prospective franchisees should carefully review the entire FDD and franchise agreement, consult with legal and financial advisors, and conduct their own due diligence to fully understand the risks and opportunities associated with investing in a Burger King franchise.