Does the Illinois Rider to the Checkers Development Agreement address fraud in the inducement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- 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 material inducement to a franchisee's investment. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
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 fraud in the inducement. Specifically, it states that no disclaimer, questionnaire, clause, or statement signed by a franchisee can be interpreted as waiving any claim of fraud in the inducement. This protection applies whether the claim is based on common law or statutory grounds.
This provision also prevents franchisees from disclaiming reliance on statements or information provided by Checkers, its brokers, or anyone acting on Checkers' behalf if that information was a material inducement to the franchisee's investment. This means that if a franchisee believes they were misled by information provided by Checkers that influenced their decision to invest, they retain the right to pursue a claim for fraud in the inducement.
Furthermore, the FDD states that this particular provision supersedes any other conflicting terms in any document executed in connection with the franchise agreement. This ensures that the franchisee's right to claim fraud in the inducement is protected, even if other parts of the agreement might suggest otherwise. This protection is in place to comply with the Illinois Franchise Disclosure Act and to protect franchisees from unknowingly waiving their rights.