Does the Illinois Rider to the Checkers Development Agreement supersede inconsistent terms?
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 not contain a clause that explicitly states it supersedes inconsistent terms within the Development Agreement itself. However, the Illinois Rider to the Franchise Agreement includes a provision addressing waivers related to fraud claims. Specifically, it states that no disclaimer, questionnaire, clause, or statement signed by a franchisee can be interpreted as waiving claims of fraud in the inducement or disclaiming reliance on statements made by Checkers. This provision explicitly supersedes any other inconsistent term in any document related to the franchise.
This means that while the Illinois Rider to the Development Agreement focuses on modifications related to jurisdictional requirements and fee deferrals mandated by the Illinois Attorney General, the Illinois Rider to the Franchise Agreement ensures that franchisees retain their rights to pursue fraud claims, regardless of any conflicting terms in other documents. This protection is particularly important for franchisees in Illinois, as it prevents Checkers from using disclaimers or waivers to avoid liability for fraudulent statements or information provided during the franchise sales process.
Prospective Checkers franchisees in Illinois should pay close attention to both the Development Agreement and the Franchise Agreement, along with their respective Riders. While the Rider to the Development Agreement primarily addresses logistical and financial aspects, the Rider to the Franchise Agreement provides crucial protection against potential fraud. Franchisees should ensure they understand their rights and are aware that they cannot waive claims of fraud, regardless of any other terms in the franchise documents. This clause offers a significant safeguard for franchisees making a substantial investment in a Checkers franchise.