Does the Illinois Rider to the Checkers Franchise Agreement supersede inconsistent terms?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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 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 the 2025 Checkers Franchise Disclosure Document, the Illinois Rider to the Franchise Agreement does supersede other inconsistent terms within documents related to the franchise, specifically concerning disclaimers related to fraud claims.
The Illinois Rider includes a provision stating that no disclaimer, questionnaire, clause, or statement signed by a franchisee regarding the franchise relationship can be interpreted as waiving claims of fraud in the inducement. This applies to both common law and statutory fraud claims. It also prevents disclaiming reliance on statements or information provided by Checkers, its brokers, or representatives that materially induced the franchisee's investment.
This provision is designed to protect franchisees in Illinois from unknowingly waiving their rights to pursue fraud claims against Checkers. It ensures that franchisees can rely on the information provided to them during the franchise sales process and that any attempts to disclaim such reliance are invalid. This protection is particularly important in Illinois due to the Illinois Franchise Disclosure Act, which aims to safeguard franchisees' interests.