What is the definition of 'Agreement' in the Illinois Rider to the Checkers Franchise Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Illinois Franchise Disclosure Act and the rules and regulations promulgated thereunder, the Franchise Agreement shall be modified by this document (the "Rider") as follows:
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- 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 Illinois and/or because Franchisee is a resident of the state of Illinois. This Rider shall be 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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Illinois Rider to the Franchise Agreement defines "Agreement" within its specific context. The Rider modifies the Franchise Agreement to comply with the Illinois Franchise Disclosure Act. In the Rider's background section, 'Agreement' refers to the original Franchise Agreement between Checkers and the franchisee, which is dated and entered into concurrently with the Rider.
This definition is crucial because the Rider's provisions directly amend and supplement the original Franchise Agreement. For instance, the Rider addresses aspects like the deferral of initial franchise fees until Checkers completes its pre-opening obligations and the franchisee commences business, a requirement imposed by the Illinois Attorney General's Office. It also stipulates that any legal actions must be instituted in Illinois courts and that Illinois law governs the agreement, overriding any conflicting terms in the original agreement.
For a prospective Checkers franchisee in Illinois, understanding this definition is essential. The Rider and the original Franchise Agreement must be read together as a single, integrated document. The Rider ensures that the franchise complies with Illinois law, providing additional protections and stipulations that might not be present in the standard Franchise Agreement. This includes the franchisee's rights under the Illinois Franchise Disclosure Act and the enforceability of specific clauses within the state.