Does the Illinois Rider to the Checkers Development Agreement affect the choice of law?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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' 2025 Franchise Disclosure Document, the Illinois Rider to the Development Agreement does affect the choice of law. Specifically, the rider stipulates that Illinois law will govern the Development Agreement, regardless of any conflicting provisions in the standard agreement. This ensures that the agreement adheres to the Illinois Franchise Disclosure Act.
For a prospective Checkers franchisee in Illinois, this means that Illinois state law will dictate the interpretation and enforcement of the Development Agreement. This is significant because Illinois law may offer specific protections or impose particular requirements on franchisors that differ from the laws of other states. The rider also specifies that any legal actions must be instituted in Illinois state or federal courts.
Furthermore, the Illinois Rider explicitly states that no clause or statement can be interpreted as a waiver of any claim of fraud in the inducement, reinforcing franchisee rights under Illinois law. This provision supersedes any other inconsistent terms in any document related to the franchise, providing an additional layer of protection for the franchisee.
This modification is put in place to comply with the Illinois Franchise Disclosure Act, which aims to protect franchisees within the state. The inclusion of this rider ensures that Checkers' franchise operations in Illinois are subject to Illinois law, potentially offering franchisees more predictable legal recourse and consumer protection.