What condition must be met for the Checkers Rider to be valid and enforceable?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
tent term of any document executed in connection with the franchise.
| CHECKERS DRIVE-IN RESTAURANTS, INC. A Delaware Corporation | AREA FRANCHISEE |
|---|---|
| By: | By: |
| Title: | Title: |
MINNESOTA RIDER TO THE FRANCHISE AGREEMENT
In recognition of the requirements of the Minnesota Franchise Law and the rules and regulations promulgated thereunder, the Franchise Agreement shall be modified by this document (the "Rider") as follows:
| 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. |
- Trademarks. Section 5.04 shall be amended by adding the following:
"Franchisor will protect the Franchisee's right to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify the franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name."
- Franchisee's Right to Transfer. Section 13.02 and Renewal of Rights Section 15.03 are amended by the inclusion of the following:
Under Minn. Rule 2860.4400D, we are prohibited from requiring you to sign a general release.
- Termination of Agreement. Sections 14.01 and 14.02 shall be amended by adding the following:
"With respect to franchises governed by Minnesota law, the franchisor will comply with Minn. Stat. Sec. 80C.,14 Subds. 3, 4, and 5 which require, except in certain specified cases, that a franchisee be given 90 days notice of termination (with 60 days to cure) and 180 days notice for non-renewal of the franchise agreement.
- Miscellaneous. Sections 18.04 and 18.09 shall be amended by the inclusion of the following:
Under Minn. Rule 2860.4400J, a franchisee cannot waive any rights, and the franchisee cannot consent to the franchisor obtaining injunctive relief, although the franchisor may seek injunctive relief. The court will also determine whether a bond is required.
- Miscellaneous. Section 18.07 is amended by the inclusion of the following:
Notwithstanding the foregoing, Minnesota Rule 2860.4400J prohibits the waiver of a jury trial.
- Miscellaneous. Sections 18.05, 18.07 and 18.08 shall be amended by adding the following:
"Pursuant to Minn. Stat. Sec. 80C.21 and Minn. Rule Part 2860.4400J, this section shall not in any way abrogate or reduce any rights of the franchisee as provided for in Minnesota Statutes, Chapter 80C."
8.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, specific conditions must be met for the Illinois, Minnesota, and Virginia Riders to the Franchise Agreement to be valid and enforceable. The Rider is annexed to and forms part of the Franchise Agreement and is executed because the franchised restaurant will be located in one of those states or because the franchisee is a resident of one of those states.
Specifically, the Rider states that it will only be effective if the jurisdictional requirements of the Illinois Franchise Disclosure Act, the Minnesota Franchise Law, or the Virginia Retail Franchising Act, and any regulations under those acts, are met independently, without relying on the Rider itself. This means that the underlying franchise agreement must already comply with the respective state's franchise laws for the Rider to have any effect.
This requirement 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 provisions of those laws. Prospective franchisees should ensure they understand the specific requirements of their state's franchise laws and confirm that the franchise agreement, independent of the Rider, complies with those requirements.