What condition must be met for the Rider to the Checkers agreement to be in effect?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | Background. Franchisor and Franchisee are parties to that certain Franchise |
|---|---|
| Agreement dated | |
| , | |
| ("Agreement") that has been entered into | |
| concurrently with the entering of this Rider. This Rider is annexed to and forms part | |
| of the Agreement. This Rider is being executed because the Franchised Restaurant | |
| to be operated by Franchisee pursuant to the Agreement will be located in the State | |
| of Minnesota and/or because Franchisee is a resident of the State of Minnesota. This | |
| Rider shall be of no force and effect unless the jurisdictional requirements of the | |
| Minnesota Franchise Law and any regulations thereunder are met independently | |
| without reference to this Rider. |
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the Rider to the franchise agreement is only effective if the jurisdictional requirements of the relevant state's franchise law are met independently, without relying on the Rider itself. This condition applies specifically to franchisees operating in or residing in Illinois, Minnesota, and Virginia.
For a prospective Checkers franchisee, this means that the Rider's provisions will only come into play if the state's franchise laws already apply to the franchise relationship, regardless of the Rider. The Rider cannot create jurisdiction where it doesn't already exist under state law. This ensures that Checkers franchisees receive the protections and benefits of their state's franchise laws.
For example, the Illinois Rider defers the collection of initial franchise fees until Checkers has completed its pre-opening obligations and the franchisee has commenced business. However, this deferral is only mandated if the Illinois Franchise Disclosure Act's requirements are met independently of the Rider. Similarly, the Virginia Rider defers payment of the initial franchise fee until Checkers has completed its pre-opening obligations, but only if required by the Virginia State Corporation Commission's Division of Securities and Retail Franchising. Therefore, franchisees should confirm that their franchise meets the state's jurisdictional requirements to ensure the Rider's provisions are enforceable.