Is the Illinois Rider to the Checkers Development Agreement effective if the Illinois Franchise Disclosure Act requirements are not met?

According to Checkers' 2025 Franchise Disclosure Document, the Illinois Rider to the Development Agreement is contingent upon meeting the requirements of the Illinois Franchise Disclosure Act. Specifically, the Rider is designed to modify the Development Agreement in recognition of these requirements.

The Rider explicitly states that it "shall be of no force and effect unless the jurisdictional requirements of the Illinois Franchise Disclosure Act and any regulations thereunder are met independently without reference to this Rider." This means that unless Checkers independently satisfies all the legal requirements for franchising in Illinois, without relying on the Rider itself to achieve compliance, the Rider is invalid and unenforceable.

This condition protects prospective Checkers franchisees in Illinois by ensuring that Checkers adheres to Illinois franchise laws. It prevents Checkers from using the Rider as a shortcut to bypass necessary legal obligations. Franchisees should confirm that Checkers has met all requirements of the Illinois Franchise Disclosure Act independently of the Rider to ensure the Rider's validity and their own protection under Illinois law.