What is the impact of the Illinois Rider on Section 18.05 of the Checkers Franchise 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.
- 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's 2025 Franchise Disclosure Document, the Illinois Rider modifies Sections 18.05 and 18.07 of the Franchise Agreement, which likely pertain to arbitration, jurisdiction, and venue. Specifically, the rider stipulates that any legal action between Checkers and the franchisee must be initiated in a state or federal court located in Illinois, regardless of what the original agreement states. This modification ensures that Illinois franchisees will have disputes resolved within the state of Illinois.
This change is significant because it overrides any clause in the standard Franchise Agreement that might require disputes to be settled in a different state, potentially closer to Checkers's headquarters or a preferred jurisdiction. By mandating Illinois courts as the venue for legal actions, the rider provides a local forum for franchisees, which can reduce travel costs and logistical challenges associated with litigation. It also means that Illinois law will be applied to the resolution of disputes, as further reinforced by the rider's amendment to Section 18.08, which specifies that Illinois law governs the agreement.
For a prospective Checkers franchisee in Illinois, this rider offers a degree of protection and convenience. It ensures that they will not be forced to litigate in an unfamiliar or distant jurisdiction. This can be particularly beneficial for smaller franchisees who may lack the resources to pursue legal action far from home. The rider also aligns with the Illinois Franchise Disclosure Act, which aims to protect franchisees by preventing them from waiving their rights under Illinois law. This provision enhances the overall fairness and transparency of the franchise relationship within the state.
In summary, the Illinois Rider to the Checkers Franchise Agreement significantly alters the jurisdiction and venue for legal disputes, mandating that any action be brought in Illinois courts and governed by Illinois law. This modification provides added protection and convenience for Illinois franchisees, ensuring that their legal rights are upheld within the state.