Does the Checkers franchise agreement allow Checkers to unilaterally waive or reduce any obligation of the franchisee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ted 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
material inducement to a franchisee's investment. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
[SIGNATURES ON FOLLOWING PAGE]
CHECKERS DRIVE-IN RESTAURANTS, INC. A Delaware Corporation
ILLINOIS RIDER TO THE DEVELOPMENT AGREEMENT
In recognition of the requirements of the Illinois Franchise Disclosure Act and the rules and regulations promulgated thereunder, the Development Agreement shall be modified by this document (the "Rider") as follows:
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- Background.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, several addenda address waivers and modifications of franchisee obligations, particularly concerning specific state laws. For instance, in Maryland, general releases signed by franchisees will not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. Similarly, in Illinois, any provision that requires a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void.
Furthermore, Minnesota law prohibits Checkers from requiring franchisees to consent to liquidated damages or waive any rights granted to them. The FDD also states that no disclaimer, questionnaire, clause, or statement signed by a franchisee can be interpreted as waiving claims of fraud in the inducement. These stipulations collectively ensure that franchisees retain certain legal rights and protections, preventing Checkers from unilaterally enforcing waivers that contravene state franchise laws.
These provisions are designed to protect franchisees from unknowingly relinquishing their legal rights or being subjected to unfair contractual terms. Prospective franchisees should carefully review these state-specific addenda to understand the full scope of their rights and protections. It is also advisable to consult with a franchise attorney to ensure full comprehension of the franchise agreement and any potential waivers or releases.