What is the impact of the Illinois Rider on Section 18.05 of the Checkers Development Agreement?
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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Illinois Rider modifies Section 18.05 of the Development Agreement, which likely pertains to dispute resolution. Specifically, the rider stipulates that 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 amendment ensures that disputes related to the Development Agreement will be resolved within the Illinois court system, regardless of any conflicting provisions in the original agreement.
This modification is significant for prospective Checkers franchisees in Illinois because it establishes a clear venue for legal proceedings. Franchisees can expect that any lawsuits related to their Development Agreement will be handled in Illinois courts, which may be advantageous for franchisees residing or operating their businesses in Illinois. This provision provides a level of predictability and convenience in case of legal disputes, as franchisees will not be required to travel to another state to resolve legal matters.
The Illinois Rider also includes broader protections for franchisees, referencing the Illinois Franchise Disclosure Act. It voids any provision that would require a franchisee to waive compliance with Illinois franchise law. Furthermore, it prevents disclaimers or statements from being interpreted as a waiver of fraud claims or reliance on information provided by Checkers during the franchise sales process. These stipulations reinforce the franchisee's rights under Illinois law and aim to protect them from potentially misleading or unfair practices.
In summary, the Illinois Rider to the Checkers Development Agreement has several important implications. It mandates that legal actions be instituted in Illinois courts, reinforces franchisee rights under Illinois law, and prevents waivers of fraud claims. These modifications collectively provide additional legal protections and clarity for Checkers franchisees operating in Illinois.