Does the Illinois Rider to the Checkers Franchise Agreement affect the franchisee's right to rely on statements?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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
Checkers/Rally's April 2025
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's 2025 Franchise Disclosure Document, the Illinois Rider to the Franchise Agreement includes provisions that protect a franchisee's right to rely on statements made by the franchisor. Specifically, the rider ensures that no statement signed by a franchisee can be interpreted as disclaiming reliance on statements made by Checkers or its representatives that induced the franchisee's investment. This protection aligns with the Illinois Franchise Disclosure Act, reinforcing the franchisee's ability to claim fraud if they relied on misleading information.
This means that Checkers franchisees in Illinois cannot waive their right to claim they were fraudulently induced into investing based on misrepresentations by the franchisor. This provision supersedes any other conflicting terms in any document related to the franchise agreement, strengthening the franchisee's position in potential disputes. The rider aims to prevent Checkers from using disclaimers or waivers to avoid liability for fraudulent statements.
For a prospective Checkers franchisee in Illinois, this rider offers a significant safeguard. It ensures that they can hold Checkers accountable for the accuracy and truthfulness of the information provided during the franchise sales process. This protection is particularly important given the investment required to start a franchise and the potential for financial harm if the franchisor makes misleading statements. Franchisees should carefully review the Illinois Rider and understand their rights under the Illinois Franchise Disclosure Act.