Does the Illinois Rider to the Checkers Development Agreement address the area franchisee's residency?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
, 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. Franchisor and Area Franchisee are parties to that certain Development Agreement dated , ("Agreement") that has been entered i
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Illinois Rider to the Development Agreement does address the area franchisee's residency. The rider is executed either because the restaurants to be developed are located in Illinois or because the area franchisee is a resident of Illinois. The rider modifies the Development Agreement in recognition of the Illinois Franchise Disclosure Act requirements.
This means that if a prospective Checkers area franchisee is an Illinois resident or plans to develop restaurants in Illinois, this rider will apply to their Development Agreement. It ensures that the agreement complies with Illinois franchise laws. The rider itself has no force unless the jurisdictional requirements of the Illinois Franchise Disclosure Act are met independently, without reference to the rider.
It is important for prospective franchisees to understand how state-specific riders like this one can impact their franchise agreement, especially concerning legal compliance and modifications to standard agreement terms. Franchisees should carefully review the entire Development Agreement and all associated riders with a legal professional to fully understand their rights and obligations.