Does the Checkers FDD specify any required actions related to the contract?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- Arbitration; Jurisdiction and Venue. Sections 18.05 and 18.07 of the Agreement shall be amended by adding the following:
Despite the provision, Franchisor and Franchisee agree that any action brought by one of them against the other must be instituted in a state or federal court located in the State of Illinois.
- Governing Law. Section 18.08 of the Agreement shall be amended by adding the following:
Despite the provision above, Franchisor and Franchisee agree that Illinois law will govern this Agreement.
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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 disclaiming reliance on or the right to rely upon any statement made or information provided by any franchisor, broker or other person acting on behalf of the franchisor that was a
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, several actions and considerations are required related to various contracts associated with the franchise. For Illinois franchisees, the Illinois Franchise Disclosure Act necessitates modifications to the franchise and development agreements, outlined in specific riders. These riders address aspects such as the deferral of initial franchise fee collection until Checkers completes its pre-opening obligations and the franchisee commences business. This deferral is mandated by the Illinois Attorney General's Office based on Checkers' audited financial statements.
Additionally, the FDD stipulates that any action brought against Checkers must be instituted in a state or federal court located in the State of Illinois, and Illinois law will govern the agreement, regardless of other provisions. The document also clarifies that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law. Furthermore, disclaimers or statements signed by a franchisee cannot waive claims of fraud in the inducement or disclaim reliance on statements made by Checkers or its representatives.
Moreover, if Checkers exercises its right to cure a default by a tenant under a lease agreement, Checkers may succeed to the tenant's interests under the lease for the remaining term. Franchisees are also responsible for the payment of all taxes related to the franchised restaurant, and in the event of a tax dispute, while franchisees can contest the liability, they cannot permit a tax sale, seizure, or attachment against the restaurant or its assets. These stipulations ensure compliance with state laws and protect both the franchisee and franchisor's interests, while also outlining specific obligations and limitations regarding legal and financial matters.