Regarding Burger King franchises in Illinois, what effect does a franchisee's signed statement have on waiving claims under state franchise law or disclaiming reliance on statements made by the franchisor?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a 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, for franchises offered and sold in Illinois, any statement, questionnaire, or acknowledgment signed by a franchisee regarding the franchise relationship will not waive claims under Illinois franchise law. This includes claims of fraud in the inducement.
Additionally, these documents cannot disclaim reliance on statements made by Burger King, franchise sellers, or anyone acting on Burger King's behalf. This protection is in place to ensure that franchisees are not bound by agreements that could force them to forfeit their rights under Illinois law or prevent them from holding Burger King accountable for their representations.
This provision supersedes any other conflicting terms in any document executed in connection with the Burger King franchise. This means that even if other agreements contain clauses that seem to waive these rights or disclaim reliance, the Illinois Franchise Disclosure Act takes precedence, ensuring the franchisee's rights are protected under Illinois law.