Can a Checkers area franchisee waive compliance with the Illinois Franchise Disclosure Act?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- No disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship shall be construed or interpreted as waiving any claim of fraud in the inducement, whether common law or statutory, or as
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, any attempt to waive compliance with the Illinois Franchise Disclosure Act is void. Specifically, the Illinois Rider to the Development Agreement and the Illinois Rider to the Franchise Agreement both contain clauses that reinforce this protection for franchisees in Illinois. This means that Checkers franchisees in Illinois cannot be forced to sign away their rights under the Illinois Franchise Disclosure Act.
This protection is significant for prospective Checkers franchisees in Illinois. It ensures that franchisees retain all rights and protections afforded to them by Illinois law, regardless of any provisions in the franchise agreement that might suggest otherwise. This includes the right to rely on statements made by the franchisor and protection against fraudulent inducement.
The inclusion of these clauses in both the Development Agreement and the Franchise Agreement demonstrates Checkers' adherence to Illinois franchise law. It also provides assurance to potential franchisees that the franchisor is committed to operating within the legal framework of the state, specifically regarding franchise disclosures and franchisee rights.
Furthermore, the FDD states that no disclaimer, questionnaire, clause, or statement signed by a franchisee can be interpreted as waiving any claim of fraud. This reinforces the franchisee's right to pursue claims of fraud in the inducement, whether based on common law or statutory grounds, and ensures that franchisees can rely on the information provided by Checkers during the franchise sales process.