Under Illinois law, what aspects of a Burger King franchise agreement, specifically termination and non-renewal, may be affected?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Illinois Franchise Disclosure Act of 1987, the BURGER KING COMPANY LLC Franchise Disclosure Document ("FDD") is amended as follows:
- Item 17 is amended to include the following:
Illinois law, 815 Illinois Compiled Statutes 705/19 and 705/20, may affect the conditions under which your franchise can be terminated and your rights upon non-renewal.
Section 41 of the Illinois Franchise Disclosure Act states that "Any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of this Act is void."
Section 4 of the Illinois Franchise Disclosure Act states that "Any provision in a franchise agreement that designates jurisdiction or venue in a forum outside of this State is void, provided that a franchise agreement may provide for arbitration in a forum outside of this State."
Therefore, Items 17, (v) and (w), of the FDD are amended to include the following:
Any provision in a Franchise Agreement or Development Agreement that designates jurisdiction or venue in a forum outside of Illinois may be unenforceable as to any cause of action which otherwise is enforceable in the courts of the State of Illinois.
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- Item 17 (w) is amended as follows: "Illinois law governs."
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- Notwithstanding anything set forth in Item 17 to the contrary, the conditions under which your franchise can be terminated and your rights upon non-renewal may be affected by Illinois law: 815 ILCS 705/19 and 705/20.
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- No statement, questionnaire, or acknowledgment signed or agreed to by you 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 us. 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, Illinois law may impact the conditions for terminating a franchise and a franchisee's rights upon non-renewal. Specifically, the Illinois Franchise Disclosure Act of 1987 outlines franchisee rights in Sections 19 and 20, which could supersede the terms outlined in the standard Burger King franchise agreement.
This means that certain provisions within the Burger King franchise agreement regarding termination or non-renewal might not be enforceable in Illinois if they conflict with state law. For example, the franchisor must provide reasonable notice and opportunity to cure defaults, with a cure period of no less than ten and no more than thirty days, to the extent required by Illinois law.
Furthermore, any attempt to force a franchisee to waive their rights under the Illinois Franchise Disclosure Act is void. This protection extends to statements or acknowledgments signed by the franchisee at the start of their relationship with Burger King, preventing them from waiving claims related to state franchise law or disclaiming reliance on statements made by the franchisor. Prospective franchisees in Illinois should carefully review Sections 19 and 20 of the Illinois Franchise Disclosure Act to fully understand their rights regarding termination and non-renewal.