What condition must be met for the Checkers Rider to the Franchise 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' 2025 Franchise Disclosure Document, the Rider to the Franchise Agreement has specific conditions that must be met for it to be effective, depending on the state. For franchisees operating in Illinois, Minnesota, or Virginia, the Rider is only effective if the jurisdictional requirements of the respective state's franchise laws are met independently, without relying on the Rider itself. This means that Checkers must ensure it complies with all state-specific regulations, such as providing the required disclosures and waiting periods, before the Rider can be considered valid.
For example, the Illinois Rider states that it is of no force and effect unless the jurisdictional requirements of the Illinois Franchise Disclosure Act and any regulations thereunder are met independently without reference to this Rider. Similarly, the Virginia Rider indicates it takes effect only when Checkers has completed its pre-opening obligations under the Franchise Agreement, as required by the Virginia State Corporation Commission's Division of Securities and Retail Franchising. The Minnesota Rider also specifies that it is only effective if the jurisdictional requirements of the Minnesota Franchise Law and any regulations are met independently.
This condition ensures that Checkers franchisees in these states receive the full protection of their state's franchise laws. It prevents Checkers from using the Rider to circumvent any requirements or protections provided by state law. Prospective franchisees should confirm that Checkers has met all jurisdictional requirements before relying on the terms of the Rider. This may involve consulting with a franchise attorney to ensure full compliance with state regulations.