Can a Checkers franchisee waive compliance with the Illinois Franchise Disclosure Act?

According to Checkers' 2025 Franchise Disclosure Document, franchisees operating in Illinois cannot waive compliance with the Illinois Franchise Disclosure Act. Specifically, the Illinois Rider to both the Franchise Agreement and the Development Agreement explicitly states that any provision attempting to waive compliance with the Illinois Franchise Disclosure Act is void. This protection ensures that franchisees in Illinois retain all rights and protections afforded to them under Illinois law, regardless of any agreement terms that may suggest otherwise.

This provision is crucial for prospective Checkers franchisees in Illinois as it safeguards their legal rights. It prevents the franchisor from enforcing any clause that might undermine the protections provided by Illinois franchise law. This includes rights related to disclosure, fair dealing, and other statutory safeguards. The rider's explicit mention of the Illinois Franchise Disclosure Act reinforces the state's commitment to protecting franchisees and ensuring transparency in the franchising process.

The Illinois Rider also addresses specific aspects of the franchise agreement to ensure compliance with Illinois law. For instance, it stipulates that Checkers will defer collection of initial fees until it has completed its pre-opening obligations and the franchisee has commenced business. This deferral requirement, imposed by the Illinois Attorney General's Office, is based on Checkers' audited financial statements, providing an additional layer of financial protection for franchisees in Illinois. This demonstrates a proactive approach to aligning the franchise agreement with state regulations and protecting the interests of franchisees.