What is Exhibit J of the Checkers FDD comprised of?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached as Exhibits to this Franchise Disclosure Document are the following contracts and their attachments:
- Agreement Riders for Registration States (Exhibit J)
EXHIBIT J
AGREEMENT RIDERS FOR CERTAIN REGISTRATION STATES
ILLINOIS RIDER TO THE FRANCHISE AGREEMENT
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.
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- Initial Franchise Fee. Section 6.01 of the Agreement shall be amended by adding the following:
Despite the payment provisions above, Franchisor will defer collection of all initial fees owed by Franchisee to Franchisor under this Agreement until Franchisor has completed all of its pre-opening obligations under this Agreement and the Franchisee has commenced doing business. This deferral requirement has been imposed by the Illinois Attorney General's Office based on the Franchisor's audited financial statements.
- Arbitration; Jurisdiction and Venue. Sections 18.05 and 18.07 of the Agreement shall be amended by adding the following:
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, Exhibit J consists of agreement riders for certain registration states. These riders are modifications to the standard franchise agreement that account for specific legal requirements in states with franchise registration laws.
For a prospective Checkers franchisee, this means that if they are opening a franchise in a state with specific franchise regulations, such as Illinois, the terms of their franchise agreement will be adjusted by a rider. These riders can cover various aspects, such as initial franchise fee deferrals or modifications to arbitration and jurisdiction clauses, as seen in the Illinois Rider example.
For example, the Illinois Rider to the Franchise Agreement modifies sections of the standard agreement to comply with the Illinois Franchise Disclosure Act. One notable modification is that Checkers will defer collection of all initial fees until they have completed their pre-opening obligations and the franchisee has commenced business. This deferral requirement was imposed by the Illinois Attorney General's Office based on Checkers' audited financial statements. Franchisees should carefully review Exhibit J to understand how the standard franchise agreement is modified for their specific state.