What is the relationship between the Illinois Rider and the Checkers Franchise Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ECKERS DRIVE-IN RESTAURANTS, INC., If a corporation, partnership, limited a Delaware corporation liability company or other legal entity: Print Name: Title: (Name of corporation, partnership, limited liability company or other legal entity) Print Name: Print Name: Print Name: If individuals: (Signature) (Print Name) (Signature) (Print Name) (Signature) (Print Name)
EXHIBIT J
AGREEMENT RIDERS FOR CERTAIN REGISTRATION STATES
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:
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.
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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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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 the Franchise Agreement for franchisees operating in Illinois, due to the requirements of the Illinois Franchise Disclosure Act. The Rider is annexed to and forms part of the Franchise Agreement, and it is executed because the franchised restaurant will be located in Illinois or because the franchisee is a resident of Illinois. However, the Rider is only effective if the jurisdictional requirements of the Illinois Franchise Disclosure Act are met independently, without relying on the Rider itself.
Specifically, the Illinois Rider amends certain sections of the standard Checkers Franchise Agreement. It stipulates that Checkers will defer collection of initial franchise fees until it has completed its pre-opening obligations and the franchisee has commenced business. This deferral is mandated by the Illinois Attorney General's Office based on Checkers's audited financial statements. The Rider also mandates that any legal action must be instituted in an Illinois state or federal court and that Illinois law will govern the agreement, overriding any conflicting provisions in the standard agreement.
Furthermore, the Illinois Rider includes provisions to protect the franchisee's rights under Illinois law. It states that any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Additionally, no disclaimer or statement signed by the franchisee can be interpreted as waiving claims of fraud or disclaiming reliance on information provided by Checkers. This provision supersedes any other inconsistent terms in any document related to the franchise agreement, providing additional protection to franchisees in Illinois.