Under what conditions does a franchisee's signed statement regarding the Burger King franchise relationship NOT waive claims under state franchise law?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a franchisee's signed statement, questionnaire, or acknowledgment related to the start of the franchise relationship will not waive claims under state franchise law. This protection extends to claims of fraud in the inducement and disclaiming reliance on statements made by Burger King, its franchise sellers, or other representatives. This provision overrides any conflicting terms in any document associated with the franchise agreement.
This means that even if a Burger King franchisee signs a document that appears to waive their rights under state franchise law, that waiver will not be effective. Franchisees retain the right to pursue claims, including those related to misleading information provided during the franchise sales process. This safeguard is particularly important because it prevents Burger King from using standardized forms to shield itself from liability for potential misrepresentations or violations of state franchise laws.
This protection is further reinforced by amendments specific to certain states like California, Maryland, and Washington, which emphasize the importance of adhering to their respective franchise laws. These amendments ensure that the jurisdictional requirements of each state's franchise laws are met independently, without relying on the amendment itself. This means that Burger King must comply with state-specific regulations, and franchisees in those states are entitled to the full protection of their local laws.
For prospective Burger King franchisees, this provision offers significant reassurance. It ensures that they cannot inadvertently forfeit their legal rights through standard paperwork. Franchisees should still carefully review all documents and seek legal advice, but this clause provides a safety net, preserving their ability to seek redress if they believe Burger King has violated state franchise laws.