What is the impact of the Illinois Rider on Section 18.08 of the Checkers Franchise 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.
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- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- 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
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 Franchise Agreement to ensure that Illinois law governs the agreement, despite any provisions to the contrary. This modification is specifically included to comply with the Illinois Franchise Disclosure Act. This means that if a Checkers franchisee is located in Illinois or is a resident of Illinois, Illinois law will dictate how the agreement is interpreted and enforced.
This is significant for prospective Checkers franchisees in Illinois because it ensures that the protections and rights afforded to them under Illinois state law are upheld. The rider also includes a provision that any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This prevents Checkers from including clauses in the agreement that might force the franchisee to unknowingly give up their legal rights under Illinois law.
Furthermore, the Illinois Rider states that no disclaimer, questionnaire, clause, or statement signed by a franchisee can be interpreted as waiving claims of fraud in the inducement or disclaiming reliance on statements made by Checkers. This protects franchisees from being bound by clauses that could prevent them from pursuing legal action if they believe they were misled into investing in the franchise. This provision supersedes any other inconsistent terms in any document related to the franchise agreement, reinforcing the protection for the franchisee.
In summary, the Illinois Rider strengthens the legal standing of Checkers franchisees in Illinois by ensuring Illinois law governs the agreement, preventing waivers of rights under Illinois law, and protecting against disclaimers related to fraudulent inducement. This provides an additional layer of security and legal recourse for franchisees operating in Illinois.