Does the Illinois Rider to the Checkers Franchise Agreement address the franchisee's residency?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
This Rider is being executed because the Franchised Restaurant to be operated by Franchisee pursuant to the Agreement will be located in the state of Illinois and/or because Franchisee is a resident of the state of Illinois. This Rider 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.
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 Franchise Agreement does address the franchisee's residency. The rider is executed because the franchised restaurant will be located in Illinois and/or because the franchisee is a resident of Illinois. However, the rider is only effective if the jurisdictional requirements of the Illinois Franchise Disclosure Act are met independently, without relying on the rider itself.
This means that if you are considering opening a Checkers franchise in Illinois or if you are an Illinois resident, this rider will be part of your franchise agreement. It ensures that the franchise agreement complies with Illinois law. The rider's provisions become relevant if the underlying agreement doesn't independently meet Illinois' legal requirements.
It is important for prospective franchisees to understand that the Illinois Rider modifies the standard franchise agreement to comply with Illinois law. This includes provisions related to initial fees, governing law, and legal recourse. Franchisees should carefully review the rider with legal counsel to fully understand their rights and obligations under Illinois law.