Does the Illinois Rider to the Checkers Development Agreement affect the arbitration provision?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- Arbitration; Jurisdiction and Venue. Sections 10.06 and 10.07 of the Agreement shall be amended by adding the following:
Despite the provision above, Franchisor and Area 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 10.07 of the Agreement shall be amended further by adding the following:
Despite the provision above, Franchisor and Franchisee agree that Illinois law will govern this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the Illinois Rider to the Development Agreement does affect the arbitration, jurisdiction, and venue provisions. Specifically, the rider amends Sections 10.06 and 10.07 of the Development Agreement.
The Illinois Rider stipulates that any legal action between Checkers and the Area Franchisee must be initiated in a state or federal court located in Illinois, regardless of what the original agreement states. This modification ensures that disputes will be resolved within the Illinois legal system.
Additionally, the Illinois Rider specifies that Illinois law will govern the Development Agreement, further solidifying the state's legal jurisdiction over the franchise relationship. This means that Illinois state laws and precedents will be used to interpret and enforce the agreement.
These changes are included in recognition of the Illinois Franchise Disclosure Act, ensuring compliance with Illinois regulations and providing franchisees with certain protections under Illinois law.