What condition must be met for the Checkers Rider to be considered valid and enforceable?
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' 2025 Franchise Disclosure Document, the enforceability of a Rider to the franchise agreement is contingent upon meeting specific jurisdictional requirements. For instance, the Illinois Rider is only valid if the jurisdictional requirements of the Illinois Franchise Disclosure Act and its regulations are independently satisfied, without relying on the Rider itself. Similarly, for a franchise operated in Virginia, the Rider is only effective if the jurisdictional requirements of the Virginia Retail Franchising Act and its regulations are independently met.
This means that the Rider's provisions are secondary to the primary franchise laws of the state where the restaurant is located or where the franchisee resides. The Rider cannot be used to circumvent or compensate for a failure to comply with these underlying legal requirements.
For a prospective Checkers franchisee, this underscores the importance of understanding and adhering to all applicable state franchise laws. The Rider is designed to supplement the franchise agreement, not to replace or override state regulations. Franchisees should consult with legal counsel to ensure full compliance with these jurisdictional requirements, as the Rider will be rendered void if these requirements are not independently satisfied.