What is the governing law for the Checkers Existing Franchisee Incentive Addendum?
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)
The 2025 Checkers Franchise Disclosure Document does not explicitly state the governing law for the Existing Franchisee Incentive Addendum itself. However, it does provide information about governing law in relation to the franchise agreement and related riders for specific states.
Specifically, for franchisees in Illinois, the Illinois Rider to the Development Agreement states that "Illinois law will govern this Agreement," amending Section 18.08 of the Development Agreement. This suggests that Checkers agreements are generally subject to specific state law depending on where the franchisee is located.
For franchisees in California, Indiana, Michigan, Rhode Island, and Wisconsin, a rider specifies that no statement can waive claims under state franchise law or disclaim reliance on franchisor statements. This indicates that these states have specific franchise laws that take precedence.
Prospective franchisees should carefully review the specific exhibits and riders applicable to their state and consult with legal counsel to understand which laws govern their agreements with Checkers.