Under what circumstances is a Burger King franchisee NOT required to execute a general release of claims?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement requires Franchisee to execute a general release of claims upon renewal or transfer of the Franchise Agreement.
California Corporations Code Section 31512 provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of that law or any rule or order thereunder is void.
Section 31512 voids a waiver of Franchisee's rights under the Franchise Investment Law (California Corporations Code Section 20010 voids a waiver of Franchisee's rights under the Franchise Relations Act (Business and Professions Code Sections 20000 - 20043)).
To the extent required by such laws, Franchisee shall not be required to execute a general release.
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, a franchisee is not required to execute a general release of claims to the extent required by applicable laws. This provision is specifically relevant in California, where California Corporations Code Section 31512 states that any condition that requires a franchisee to waive compliance with any provision of California franchise law is void. This includes waivers of rights under the Franchise Investment Law and the Franchise Relations Act.
This means that while the standard Burger King franchise agreement may include a requirement for a general release of claims upon renewal or transfer, this requirement is superseded by California law to protect franchisees' rights. Therefore, a Burger King franchisee in California cannot be forced to sign a general release that would waive their rights under California franchise laws.
For prospective Burger King franchisees in California, this is a significant protection. It ensures that they retain their legal rights and recourse under state law, even when renewing or transferring their franchise. This provision aims to prevent Burger King from using the renewal or transfer process to force franchisees into waiving potential claims they may have against the company.