Does the Illinois Rider to the Franchise Agreement for Checkers affect the arbitration provision?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
- Governing Law. Section 18.08 of the Agreement shall be amended by adding the following:
Despite the provision above, Franchisor and Franchisee agree that Illinois law will govern this Agreement.
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 affect the arbitration provision. Specifically, Sections 18.05 and 18.07 of the Franchise Agreement are amended by the Rider.
The Rider 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, overriding any conflicting venue provisions in the standard agreement. Furthermore, the Rider specifies that Illinois law will govern the Franchise Agreement, regardless of any other governing law clauses present in the original agreement.
This modification ensures that Illinois franchisees are subject to the legal jurisdiction and laws of their state, which provides a degree of protection and familiarity. It also prevents Checkers from compelling franchisees to resolve disputes in a potentially distant or inconvenient forum. This is a significant point for prospective franchisees in Illinois to consider, as it defines the legal framework for resolving potential disputes with the franchisor.