For Burger King franchises in Maryland, does the amendment to the franchise agreement allow franchisees to waive claims under applicable state franchise law, including fraud in the inducement?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
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 amendment to the franchise agreement for Maryland franchisees specifically protects them from waiving certain claims. The document states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including claims related to fraud in the inducement. This protection extends to disclaiming reliance on statements made by Burger King or its representatives. This provision overrides any conflicting terms in other franchise documents.
This means that Burger King franchisees in Maryland retain their rights under Maryland franchise law, even if other parts of the franchise agreement might suggest otherwise. The amendment ensures that franchisees cannot unintentionally or unknowingly give up their legal rights through standard paperwork or acknowledgments at the start of their franchise relationship.
This type of protection is not universally included in franchise agreements, so it represents a potentially significant benefit for Burger King franchisees in Maryland. It provides an added layer of legal security, ensuring that franchisees can pursue claims of fraud or other violations of state franchise law without being barred by waivers or disclaimers.