Can a Checkers franchisee waive a claim of fraud in the inducement related to the franchise relationship?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
N CALIFORNIA, INDIANA, MICHIGAN, RHODE ISLAND, AND WISCONSIN**
This Rider DRIVE-IN RESTAURANTS, INC., a Delaware Street, Suite 710, Tampa, Florida , ("Franchisee"). (the "Rider") is made and entered into by and between CHECKERS corporation located at 4300 West Cypress 33607 ("Franchisor"), and whose principal business address is 1. Background. Franchisor and Franchisee are parties to that certain Franchise Agreement that has been signed at the same time as the signing of this Rider (the "Franchise Agreement"). This Rider is part of the Franchise Agreement. 2. The following No Waiver of Disclaimer of Reliance in Certain States. provision applies only to franchisees and franchises that are subject to the state franchise disclosure laws in California, Indiana, Michigan, Rhode Island, or Wisconsin: No statement, questionnaire or acknowledgment signed or agreed to by a franchisee the in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or any other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise. IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Effective Date stated in the Franchise Agreement. CHECKERS DRIVE-IN RESTAURANTS, INC. A Delaware Corporation Checkers/Rally's April 2025
ITEM 23 RECEIPTS
The last 2 pages of this Franchise Disclosure Document are identical pages acknowledging receipt of this entire document (including the exhibits). Please sign and return to us one copy and please keep the other copy along with this Franchise Disclosure Document.
EXHIBIT A
LIST OF STATE AGENCIES/AGENTS FOR SERVICE OF PROCESS
LIST OF STATE AGENCIES
Listed here are the names, addresses and telephone numbers of the state agencies having responsibility for franchising disclosure/registration laws. We may not yet be registered to sell franchises in any or all of these states.
If a state is not listed, we have not appointed an agent for service of process in that state in connection with the requirements of the franchise laws. There may be states in addition to those listed below in which we have appointed an agent for service of process.
There also may be additional agents appointed in some of the states listed.
California
Department of Financial Protection and Innovation: Toll Free: 1 (866) 275-2677
Los Angeles
Suite 750 320 West 4th Street Los Angeles, California 90013-2344 (213) 576-7500
Sacramento
2101 Arena Boulevard Sacramento, CA 95834 (916) 445-7205
San Diego
1350 Front Street San Diego, California 92101-3697 (619) 525-4233
San Francisco
One Sansome Street, Suite 600 San Francisco, California 94104 (415) 972-8559
Hawaii
Franchise & Securities Division State Department of Commerce P.O. Box 40 Honolulu, Hawaii 96813 (808) 586-2722
Illinois
Franchise Division Office of the Attorney General 500 South Second Street Springfield, Illinois 62706 (217) 782-4465
Indiana
Franchise Division Office of Secretary of State 302 W. Washington Street, Rm. E111 Indianapolis, Indiana 46204 (317) 232-6681
Maryland
Franchise Office Division of Securities 200 St. Paul Place- 20th Floor Baltimore, Maryland 21202 (410) 576-6360
Checkers/Rally's April 2025
Michigan
Consumer Protection Division Franchise Section P.O.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the ability of a franchisee to waive a claim of fraud in the inducement relating to the franchise relationship is limited. For franchisees and franchises subject to state franchise disclosure laws in California, Indiana, Michigan, Rhode Island, or Wisconsin, no statement, questionnaire, or acknowledgment can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Checkers or its representatives. This provision overrides any conflicting terms in franchise documents.
For franchisees operating in Illinois, any provision that attempts to bind them to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. No signed document can be interpreted as waiving a fraud in the inducement claim or disclaiming reliance on information provided by Checkers or its brokers that materially induced the franchisee's investment. This also supersedes any inconsistent terms.
Similarly, for franchisees in New York, all rights and causes of action arising from Article 33 of the General Business Law of the State of New York remain in force, satisfying the non-waiver provisions of GBL Sections 687.4 and 687.5. No statement signed by a franchisee can waive a claim of fraud in the inducement or disclaim reliance on information provided by Checkers or its representatives that was a material inducement to the franchisee's investment. Minnesota also has similar protections in place for franchisees. These stipulations ensure that franchisees in these states retain their legal rights and protections, preventing unintentional or forced waivers of fraud claims.