Can a Checkers area franchisee waive claims of fraud in the inducement in Illinois?

According to Checkers' 2025 Franchise Disclosure Document, franchisees in Illinois cannot waive claims of fraud in the inducement. The Illinois Rider to both the Development Agreement and the Franchise Agreement explicitly states that no disclaimer, questionnaire, clause, or statement signed by a franchisee can be interpreted as waiving such claims, whether they are based on common law or statute. This protection extends to disclaiming reliance on statements or information provided by Checkers, its brokers, or anyone acting on its behalf if that information was a material inducement to the franchisee's investment.

This provision is included to ensure compliance with the Illinois Franchise Disclosure Act, which aims to protect franchisees from unknowingly relinquishing their rights. The rider specifically references Section 41 of the Illinois Franchise Disclosure Act, reinforcing the non-waiver provision. This means that any agreement term that conflicts with this protection is superseded, giving franchisees in Illinois a stronger legal standing against potential misrepresentations or fraudulent activities by the franchisor during the franchise sales process.

For a prospective Checkers franchisee in Illinois, this is a significant safeguard. It means that even if certain documents contain language that could be interpreted as a waiver, Illinois law, as incorporated into the franchise agreement, prevents such waivers from being enforced regarding fraud in the inducement. This protection encourages transparency and accurate disclosure from the franchisor, knowing that franchisees retain the right to pursue claims of fraud if they believe they were misled into investing in the franchise.