Under what circumstances does a franchisee's signed statement, questionnaire, or acknowledgment NOT waive claims under state franchise law, including fraud in the inducement, for a Burger King franchise?
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.
Each provision of this Amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the California Franchise Investment Law, Cal. Corporations Code Sections 31000 et seq. are met independently without reference to this Amendment.
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's signed statement, questionnaire, or acknowledgment will not waive claims under applicable state franchise law, including claims of fraud in the inducement. This protection applies regardless of any other terms in documents related to the franchise agreement.
This provision ensures that franchisees retain their legal rights under state franchise laws, even after signing agreements or acknowledgments. It specifically protects against unintentionally waiving claims related to fraud, where a franchisee might argue they were misled into signing the agreement. This safeguard is particularly relevant in states with franchise-specific laws designed to protect franchisees.
However, the FDD stipulates that this protection is effective only to the extent that the jurisdictional requirements of the relevant state's franchise law are independently met, without relying on this specific provision. This means that the state's franchise law must already provide such protections for the clause to be fully effective.
In practical terms, this means a Burger King franchisee should still consult with legal counsel to understand their rights under state law. While Burger King cannot enforce waivers of these rights through standard documents, the franchisee must still ensure they meet all the requirements to assert those rights under the specific laws of their state.