Does the Illinois Rider to the Franchise Agreement for Checkers supersede any other 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 Checkers' 2025 Franchise Disclosure Document, the Illinois Rider to the Franchise Agreement does supersede other terms under specific conditions. Specifically, a provision within the Illinois Rider states that no disclaimer, questionnaire, clause, or statement signed by a franchisee related to the franchise commencement can be interpreted as waiving claims of fraud in the inducement. This includes both common law and statutory fraud. It also prevents disclaiming reliance on statements or information from Checkers, brokers, or anyone acting on Checkers' behalf if that information materially induced the franchisee's investment.
This provision is explicitly designed to protect franchisees in Illinois from inadvertently waiving their rights to claim fraud or reliance on misleading information during the initial stages of the franchise relationship. This protection is particularly relevant in Illinois due to the Illinois Franchise Disclosure Act, which aims to ensure transparency and fairness in franchising.
For a prospective Checkers franchisee in Illinois, this means that any document they sign at the beginning of their franchise agreement cannot be used to prevent them from later claiming they were fraudulently induced into the agreement or that they relied on misleading information provided by Checkers. This offers an additional layer of security and legal recourse for franchisees operating in Illinois, ensuring that they are not bound by waivers that could compromise their ability to seek justice in cases of misrepresentation or fraud.