Does the Illinois Rider to the Checkers Development Agreement affect the venue for legal actions?
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.
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 venue for legal actions. Specifically, it stipulates that any legal action brought by either Checkers or the franchisee against the other must be initiated in a state or federal court located in Illinois. This modification is made in recognition of the requirements of the Illinois Franchise Disclosure Act.
This requirement means that if a Checkers franchisee in Illinois has a dispute with the company that leads to legal action, the case must be pursued in Illinois, regardless of any other venue provisions in the standard Development Agreement. This could increase costs for Checkers if they have to litigate outside of their principal place of business. Conversely, it may benefit the franchisee by keeping the legal proceedings within their home state.
It is important to note that this venue stipulation is specifically tied to the Illinois Rider and is influenced by the Illinois Franchise Disclosure Act. Franchisees should carefully review this rider and understand the implications of litigating disputes in Illinois, as it could affect their legal strategy and expenses.