For Burger King franchises in California, what law might supersede the Development Agreement's requirement for the application of Florida laws?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary set forth in the Development Agreement, the following provisions shall supersede and apply to all BURGER KING franchises offered and sold in the State of California:
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- The California Franchise Relations Act (Business and Professions Code Sections 20000 through 20043) provides franchisees with additional rights concerning transfer, termination or non-renewal of the Development Agreement and certain provisions of the Development Agreement relating to transfer, termination and/or non-renewal may be superseded by the Act. There may also be court decisions which may supersede the Development Agreement and Developer's relationship with BKC, including the areas of transfer, termination and renewal of Developer's franchise. If the Development Agreement is inconsistent with the law, the California law will control.
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- The Development Agreement requires application of the laws of Florida. This provision may not be enforceable under California law.
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, for franchises offered and sold in California, the requirement in the Development Agreement to apply Florida laws may not be enforceable under California law. Specifically, the California Franchise Relations Act (Business and Professions Code Sections 20000 through 20043) provides franchisees with additional rights concerning transfer, termination, or non-renewal of the Development Agreement. Court decisions may also supersede the Development Agreement and the developer's relationship with Burger King, particularly in areas of transfer, termination, and renewal.
This means that if there is any conflict between the Development Agreement and California law, California law will take precedence. This is particularly relevant for California franchisees because it ensures that they are protected by the state's franchise-specific laws, which may offer greater rights and protections than Florida law.
For a prospective Burger King franchisee in California, this amendment is crucial. It clarifies that certain provisions in the Development Agreement, such as those relating to choice of law, termination, and non-renewal, are subject to California law. Therefore, franchisees should be aware of their rights under the California Franchise Relations Act and consult with legal counsel to ensure full compliance and understanding of their obligations and protections under both the franchise agreement and California law.