Where does a Burger King franchisee consent to jurisdiction for proceedings related to the franchise agreement, and in which county should these proceedings be held, to the extent permitted by law?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
ed with the following language:
- C. Franchisee desires to acquire a franchise to operate a BURGER KING Restaurant at the Premises for the entire Term specified in this Agreement.
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- No statement, questionnaire, or acknowledgment signed or agreed to by 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.
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- Each provision of this Amendment is effective only to the extent with respect to such provision that the jurisdictional requirements of the Hawaii Franchise Investment Law are met independently without reference to this Amendment.
[Signature Page Follows]
IN WITNESS WHEREOF, the parties have executed this Amendment to the Franchise Agreement on the same day that the Franchise Agreement was executed.
| BURGER KING COMPANY LLC |
|---|
| By: |
| Print Name: |
| Its: |
| FRANCHISEE: |
| *, |
| a * |
| By: |
| *, Managing Owner |
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.
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 amendments to the franchise agreement address the jurisdiction and venue for legal proceedings, particularly in the states of North Dakota and Illinois. In North Dakota, the North Dakota Securities Commissioner has determined that it is unfair and inequitable for Burger King to require franchisees to consent to the jurisdiction of courts located outside of North Dakota. Therefore, any references in the Franchise Agreement that require the franchisee to consent to jurisdiction outside of North Dakota are deleted. Similarly, the franchisee cannot be required to agree to arbitration or mediation of disputes at a location that is remote from the franchisee's business; the site of arbitration or mediation must be agreeable to all parties.
For Burger King franchises in Illinois, the Illinois Franchise Disclosure Act stipulates that any provision in a franchise agreement that designates jurisdiction or venue in a forum outside of Illinois is void. However, the franchise agreement may still provide for arbitration in a forum outside of Illinois. This means that while Burger King cannot force an Illinois franchisee to litigate in another state, arbitration outside of Illinois is permissible.
These amendments reflect a trend in franchise law to protect franchisees from franchisors imposing distant or unfair legal venues. Prospective Burger King franchisees should carefully review the specific amendment for their state to understand their rights regarding jurisdiction, venue, arbitration, and mediation, as these can significantly impact the cost and convenience of resolving disputes.