Does the provision regarding fraud claims supersede other terms in documents related to the Checkers franchise?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, certain provisions protect franchisees against waiving fraud claims, and these provisions take precedence over other terms in franchise-related documents. Specifically, in California, Indiana, Michigan, Rhode Island, and Wisconsin, no statement can waive claims under state franchise law, including fraud in inducement, or disclaim reliance on franchisor statements.
For franchisees in Minnesota and Illinois, similar protections exist. No disclaimer can be interpreted as waiving fraud claims or disclaiming reliance on information provided by Checkers that induced the franchisee's investment. These stipulations ensure that franchisees in these states retain their rights to pursue fraud claims, regardless of any conflicting terms in signed documents.
For franchisees in New York, the FDD states that all rights and causes of action arising in the franchisee's favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force. This ensures that the non-waiver provisions of GBL Sections 687.4 and 687.5 are satisfied, meaning that Checkers franchisees in New York cannot waive their rights under New York law.