Is the Illinois Rider to the Checkers Franchise Agreement effective if the Illinois Franchise Disclosure Act requirements are not met?

According to Checkers' 2025 Franchise Disclosure Document, the Illinois Rider to the Franchise Agreement is contingent upon meeting the requirements of the Illinois Franchise Disclosure Act. Specifically, the Rider is designed to modify the standard Franchise Agreement to comply with Illinois law.

According to the FDD, the Rider is 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. This means that the modifications and stipulations within the Illinois Rider, which address aspects like initial franchise fee deferral and legal jurisdiction, only become active and enforceable if Checkers has already satisfied all the necessary legal prerequisites for offering a franchise in Illinois.

For a prospective Checkers franchisee in Illinois, this conditionality is crucial. It underscores the importance of ensuring that Checkers is fully compliant with Illinois franchise law before the agreement is finalized. If these requirements are not met, the franchisee cannot rely on the protections and modifications provided within the Illinois Rider. This includes the deferral of initial fees and the stipulation that Illinois law governs the agreement, potentially leaving the franchisee in a vulnerable position.