Does the Illinois Rider to the Franchise Agreement for Checkers affect the governing law provision?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
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- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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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
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 indeed affect the governing law provision. Specifically, Section 18.08 of the Franchise Agreement is amended by the rider. Despite any other provision in the agreement, the rider stipulates that Illinois law will govern the agreement between Checkers and the franchisee. This modification is included in the Illinois Rider to ensure compliance with the Illinois Franchise Disclosure Act.
This means that if a Checkers franchisee in Illinois has a legal dispute with the company, Illinois law will be applied to resolve the issue, regardless of what the standard franchise agreement might otherwise state. This can be significant because Illinois laws may offer different protections or have different interpretations than the laws of other states. For a prospective franchisee, this provides a degree of legal certainty and protection under Illinois law.
Furthermore, the Illinois Rider explicitly states that any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Additionally, no disclaimer or statement signed by the franchisee can be interpreted as waiving claims of fraud or disclaiming reliance on information provided by Checkers. These provisions reinforce the franchisee's rights and protections under Illinois law, ensuring that the franchisee cannot inadvertently relinquish these rights through standard contractual language.
In summary, the Illinois Rider to the Checkers Franchise Agreement modifies the standard governing law provision to ensure that Illinois law prevails, provides non-waiver protection for compliance with Illinois laws, and protects franchisees from unintentionally waiving fraud claims. This offers additional legal safeguards for franchisees operating in Illinois.