What is the governing state law for Checkers Drive-In Restaurants, Inc.?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
CHECKERS DRIVE-IN RESTAURANTS, INC., a Delaware corporation
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 FDD, Checkers Drive-In Restaurants, Inc. is governed by Delaware law, as it is a Delaware corporation. However, the franchise agreement may be subject to the laws of other states depending on where the franchisee is located. For instance, an Illinois Rider to the Franchise Agreement states that Illinois law will govern the agreement for franchisees in Illinois, overriding the standard provision.
For franchisees in California, Indiana, Michigan, Rhode Island, or Wisconsin, a rider to the franchise agreement specifies that no statement or acknowledgment can waive claims under state franchise law, including fraud in inducement, or disclaim reliance on statements made by Checkers. This provision takes precedence over any other term in the franchise documents.
These state-specific riders and provisions are included to ensure compliance with local franchise disclosure laws and to protect franchisees' rights. Prospective franchisees should carefully review any state-specific riders or addenda included in their franchise agreement to understand how local laws may affect their rights and obligations.