What is the name of the document that the Illinois Rider modifies for Checkers franchises?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS RIDER TO THE FRANCHISE AGREEMENT
In recognition of the requirements of the Illinois Franchise Disclosure Act and the rules and regulations promulgated thereunder, the Franchise Agreement shall be modified by this document (the "Rider") as follows:
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- Background. Franchisor and Franchisee are parties to that certain Franchise Agreement dated , ("Agreement") that has been entered into concurrently with the entering of this Rider. This Rider is annexed to and forms part of the Agreement. This Rider is being executed because the Franchised Restaurant to be operated by Franchisee pursuant to the Agreement will be located in the state of Illinois and/or because Franchisee is a resident of the state of Illinois. This Rider shall be of no force and effect unless the jurisdictional requirements of the Illinois Franchise Disclosure Act and any regulations thereunder are met independently without reference to this Rider.
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- Initial Franchise Fee. Section 6.01 of the Agreement shall be amended by adding the following:
Despite the payment provisions above, Franchisor will defer collection of all initial fees owed by Franchisee to Franchisor under this Agreement until Franchisor has completed all of its pre-opening obligations under this Agreement and the Franchisee has commenced doing business. This deferral requirement has been imposed by the Illinois Attorney General's Office based on the Franchisor's audited financial statements.
- Arbitration; Jurisdiction and Venue. Sections 18.05 and 18.07 of the Agreement shall be amended by adding the following:
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Illinois Rider modifies the Franchise Agreement. Specifically, the Illinois Rider to the Franchise Agreement is implemented to comply with the Illinois Franchise Disclosure Act.
For franchisees in Illinois, this means that certain sections of the standard Franchise Agreement are altered by the Illinois Rider. These modifications address aspects such as the collection of initial franchise fees, which may be deferred until Checkers has fulfilled its pre-opening obligations and the franchisee has started business operations. This deferral is based on requirements imposed by the Illinois Attorney General's Office, considering Checkers' audited financial statements.
Additionally, the Illinois Rider stipulates that any legal actions must be instituted in Illinois state or federal courts, and Illinois law governs the agreement, regardless of any conflicting provisions in the standard Franchise Agreement. The rider also ensures that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act or disclaim reliance on statements made by Checkers during the franchise relationship, protecting franchisees from potentially disadvantageous terms.