What is the effective date of the Illinois Rider to the Franchise Agreement for Checkers?
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 does not specify a particular effective date within the excerpt provided. Instead, the Rider's background section states that the Franchise Agreement is dated and entered into concurrently with the Rider.
Furthermore, the Rider itself becomes effective only if the requirements of the Illinois Franchise Disclosure Act are independently met, without relying on the Rider itself. This means the Rider's enforceability is contingent upon compliance with Illinois franchise law.
Prospective Checkers franchisees in Illinois should clarify with the franchisor the precise date the Rider becomes effective and what steps are necessary to ensure compliance with the Illinois Franchise Disclosure Act. This will ensure that both parties are clear on their obligations and rights under the franchise agreement and the Rider.