What is the effect of Section 41 of the Illinois Franchise Disclosure Act on Checkers franchise agreements?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- No disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship shall be construed or interpreted as waiving any claim of fraud in the inducement, whether common law or statutory, or as
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Section 41 of the Illinois Franchise Disclosure Act has a specific impact on franchise agreements within Illinois. This section ensures that any provision in the franchise agreement that attempts to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is considered void. This protects franchisees by preventing them from unknowingly or unwillingly giving up their rights under Illinois law.
Furthermore, the Illinois Rider to the Franchise Agreement clarifies that no statement, questionnaire, or clause signed by a Checkers franchisee can be interpreted as a waiver of claims related to fraud in the inducement. This means franchisees retain the right to pursue claims of fraud based on statements or information provided by Checkers or its representatives that materially influenced their decision to invest in the franchise. This provision takes precedence over any conflicting terms in other documents associated with the franchise agreement.
In practical terms, this means that Checkers franchisees in Illinois have stronger legal protections. They cannot be forced to waive their rights under Illinois law, and they retain the ability to claim fraud if they believe they were misled during the franchise sales process. This Illinois Rider is annexed to and forms part of the Franchise Agreement and 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.