According to the Illinois Rider, where must actions against Checkers be instituted?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- Arbitration; Jurisdiction and Venue. Sections 18.05 and 18.07 of the Agreement shall be amended by adding the following:
Despite the provision, Franchisor and Franchisee agree that any action brought by one of them against the other must be instituted in a state or federal court located in the State of Illinois.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, specifically the Illinois Rider to both the Franchise Agreement and the Development Agreement, any legal action initiated by either Checkers or the franchisee against the other must be filed in a state or federal court located within the State of Illinois.
This clause modifies the standard arbitration, jurisdiction, and venue sections of the franchise and development agreements. It ensures that disputes are resolved in Illinois, regardless of any conflicting provisions in the main agreements. This requirement is in place due to the Illinois Franchise Disclosure Act.
For a prospective Checkers franchisee in Illinois, this means that if a dispute arises that leads to legal action, they will need to engage legal counsel familiar with the Illinois court system. This could potentially increase legal costs for franchisees located outside of Illinois, as they would need to travel to Illinois for court proceedings and potentially hire local counsel.