What is the impact of the Illinois Rider on Section 18.08 of the Checkers Development Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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' 2025 Franchise Disclosure Document, the Illinois Rider modifies Section 18.08 of the Development Agreement, which typically deals with governing law. The rider stipulates that, despite what the original Section 18.08 states, the laws of Illinois will govern the Development Agreement between Checkers and the franchisee. This modification is specifically applicable when the restaurants to be developed are located in Illinois or if the franchisee is an Illinois resident, ensuring compliance with the Illinois Franchise Disclosure Act.
This change means that any legal disputes or interpretations of the Development Agreement will be subject to Illinois law, regardless of what the original agreement might have specified. This is intended to protect franchisees operating in Illinois under the Illinois Franchise Disclosure Act. The rider ensures that franchisees in Illinois have the legal protections afforded to them by the state.
Prospective Checkers franchisees in Illinois should be aware of this rider as it dictates which state's laws will govern their agreement. This could have implications for how disputes are resolved and what legal standards are applied to the franchise relationship. It is important for franchisees to understand their rights and obligations under Illinois law, as this rider ensures those laws will be applicable.