Under what circumstances is Burger King prohibited from requiring franchisees to assent to a release, assignment, novation, or waiver?

California law.

• 1. Section C of the Introduction of the Franchise Agreement shall be deleted in its entirety and replaced with the following language:
  • C. Franchisee desires to acquire a franchise to operate a BURGER KING Restaurant at the Premises for the entire Term specified in this Agreement.
• 1. 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.

1. 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.

IN WITNESS WHEREOF, the parties have executed this Amendment to the Franchise Agreement on the same day that the Franchise Agreement was executed.

THIS AMENDMENT IS AN ATTACHMENT TO ALL BURGER KING® RESTAURANT FRANCHISE AGREEMENTS (ENTITY) GRANTED IN THE STATE OF CALIFORNIA.

AMENDMENT TO BURGER KING® RESTAURANT FRANCHISE AGREEMENT (ENTITY) REQUIRED BY THE STATE OF HAWAII Burger King Restaurant

Notwithstanding anything to the contrary set forth in the Franchise Agreement, the following provisions shall supersede and apply to all BURGER KING franchises offered and sold in the State of Hawaii:

• 1. Section 18.B of the Franchise Agreement shall be amended by the addition of the following new subsection (6), which shall be considered an integral part of the Agreement:
  • (6) Hawaii Law: Notwithstanding anything to the contrary in this Section 18.B, BKC shall comply with Hawaii law which currently requires that BKC compensate the Franchisee upon termination or refusal to renew the franchise for the fair market value, at the time of the termination or expiration of the franchise, of any inventory, supplies, equipment and furnishings which were purchased from BKC or a supplier designated by BKC. Personalized materials which have no value to BKC need not be compensated for. If BKC refuses to renew a franchise for the purpose of converting the Franchisee's business to one owned and operated by BKC, BKC, in addition, must compensate the Franchisee for the loss of goodwill. BKC may deduct reasonable costs incurred in removing, transporting and disposing of the Franchisee's inventory, supplies, equipment and furnishings pursuant to these requirements, and may offset any moneys due BKC.
• 1. No release, assignment, novation, or waiver set forth in the Agreement will relieve BKC or any other person from liability imposed by the Hawaii Franchise Investment Law, Hawaii Rev. Stat. §§ 482E, et seq.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)