factual

Does the Illinois Rider to the Checkers Franchise Agreement address arbitration?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. Arbitration; Jurisdiction and Venue. Sections 18.05 and 18.07 of the Agreement shall be amended by adding the following:

Despite the provision, Franchisor and 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 the 2025 Checkers Franchise Disclosure Document, the Illinois Rider to the Franchise Agreement does address arbitration, jurisdiction, and venue. Specifically, it amends Sections 18.05 and 18.07 of the Franchise Agreement by stating that any action brought by either Checkers or the franchisee against the other must be instituted in a state or federal court located in the State of Illinois.

This modification means that despite any provisions in the standard Franchise Agreement that might specify a different location or method for dispute resolution (such as arbitration), franchisees operating in Illinois or residing in Illinois are entitled to have legal actions against Checkers take place in Illinois courts. This could be more convenient and cost-effective for Illinois franchisees, as they would not need to travel to another state for court proceedings.

This stipulation provides a legal advantage to Checkers franchisees in Illinois, ensuring that disputes are resolved within the state's legal system. It also reflects compliance with the Illinois Franchise Disclosure Act, which aims to protect franchisees by ensuring certain rights and legal venues are maintained within the state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.