In the Burger King Franchise Agreement, are there any references requiring consent to termination penalties or liquidated damages that are deleted?

According to Burger King's 2025 Franchise Disclosure Document, specifically for franchises offered and sold in the State of North Dakota, any references in the Franchise Agreement that would require a franchisee to consent to termination penalties or liquidated damages are deleted. This is due to a determination by the North Dakota Securities Commissioner that such requirements are unfair and inequitable under the North Dakota Franchise Investment Law. This amendment ensures that Burger King franchisees in North Dakota are not bound by clauses that mandate their consent to these types of financial penalties.

For prospective Burger King franchisees in North Dakota, this deletion is a significant benefit. It means that the franchisee cannot be forced to agree to termination penalties or liquidated damages as a condition of the franchise agreement. This provides a layer of protection against potentially onerous financial burdens that could arise from disputes or termination scenarios.

It is important to note that this amendment specifically applies to Burger King franchises in North Dakota, reflecting the state's franchise investment law. Franchisees in other states may be subject to different terms regarding termination penalties or liquidated damages, as dictated by their respective state laws. Therefore, prospective franchisees should carefully review the specific amendments and legal requirements applicable to their state.

Furthermore, for Burger King franchises granted in the state of Minnesota, Minnesota Statutes prohibit Burger King from requiring franchisees to consent to liquidated damages or termination penalties.