Where does a Burger King franchisee consent to jurisdiction for proceedings related to the franchise agreement?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS AMENDMENT IS AN ATTACHMENT TO ALL BURGER KING® RESTAURANT FRANCHISE AGREEMENTS (ENTITY) GRANTED IN THE STATE OF HAWAII.
AMENDMENT TO BURGER KING® RESTAURANT FRANCHISE AGREEMENT (ENTITY) REQUIRED BY THE STATE OF ILLINOIS Burger King Restaurant
Notwithstanding anything to the contrary set forth in the Franchise Agreement, the following provisions shall supersede and apply to all BURGER KING franchises offered and sold in the State of Illinois:
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- Illinois law governs the Franchise Agreement.
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- Franchisee's rights upon termination and non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act of 1987, Ill. Comp. Stat. §§ 705/1 to 705/44 (the "Act").
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- Section 4 of the Act states that "Any provision in a franchise agreement that designates jurisdiction or venue in a forum outside of this State is void, provided that a franchise agreement may provide for arbitration in a forum outside of this State."
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- Any condition, stipulation or provision purporting to bind any person acquiring a franchisee to waive requirements with any provisions of the Act or any other law of the State of Illinois is void. This shall not prevent any person from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under the provisions of the Act, nor shall it prevent the arbitration of any claims pursuant to the provisions of Title IX of the United States Code.
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- The provision in the Franchise Agreement which terminates the franchise upon the bankruptcy of the Franchisee may not be enforceable under Title 11, United States Code, Section 101.
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- Section 18.A of the Franchise Agreement is modified by the insertion of the following at the end of such Section:
Notwithstanding the foregoing, to the extent required by Illinois law, the Franchisor shall provide reasonable notice to the Franchisee with the opportunity to cure any defaults under this Section 18.A, which shall not be less than ten (10) days and in no event shall such notice be required to be more than thirty (30) days.
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 standard franchise agreement may designate specific jurisdictions for legal proceedings, but these terms are subject to state-specific amendments that could override them. For instance, the FDD includes amendments for franchisees in Illinois, North Dakota, California and Minnesota that address the issue of jurisdiction.
Specifically, the amendment for Illinois states that any provision in the franchise agreement that designates jurisdiction or venue in a forum outside of Illinois is void. The North Dakota amendment indicates that it is considered unfair for Burger King to require a franchisee to consent to the jurisdiction of courts outside of North Dakota, thus deleting any such references in the franchise agreement. The California amendment notes that the franchise agreement requires application of Florida law, but this provision may not be enforceable under California law.
For a prospective Burger King franchisee, this means the jurisdiction for legal proceedings is not uniformly determined across all states. Franchisees need to carefully review the specific amendments and applicable state laws to understand their rights and obligations regarding jurisdiction. It is essential to consult with a legal professional to fully understand the implications of these jurisdictional clauses and how they apply to their specific franchise agreement and location.