Does the Illinois Rider to the Checkers Franchise Agreement affect the venue for legal actions?
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 impact the venue for legal actions. Specifically, it amends sections 18.05 and 18.07 of the agreement, which likely deal with arbitration, jurisdiction, and venue.
The rider stipulates that despite any conflicting provisions in the original agreement, any legal action initiated by either Checkers or the franchisee against the other must be filed in a state or federal court located within the State of Illinois. This means that if a dispute arises and leads to a lawsuit, the case will be heard in Illinois, regardless of where Checkers' corporate headquarters are located (which the document states is currently in Tampa, Florida).
This modification is significant for a prospective Checkers franchisee in Illinois because it ensures that any legal proceedings will take place in their home state. This could reduce travel costs and logistical challenges associated with litigation. It also means that Illinois law will govern the agreement, as stated in section 4 of the Illinois Rider, potentially offering the franchisee certain protections under Illinois franchise law. This is a deviation from the standard agreement, which might otherwise require disputes to be resolved in Florida, where Checkers' headquarters are located.