What is the 'Rider' referring to in the context of the Checkers Illinois Franchise Agreement?
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 "Rider" in the context of the Illinois Franchise Agreement refers to a document that modifies the standard Franchise Agreement to comply with the Illinois Franchise Disclosure Act and its associated regulations.
The Illinois Rider is annexed to and forms part of the Franchise Agreement and is executed because the franchised restaurant will be located in Illinois and/or 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.
The Rider specifically amends certain sections of the standard Checkers Franchise Agreement. For example, it may modify the payment terms for the initial franchise fee, deferring collection until Checkers has completed its pre-opening obligations and the franchisee has commenced business. This deferral is imposed by the Illinois Attorney General's Office based on Checkers' audited financial statements. The Rider also stipulates that any legal action must be instituted in Illinois, and Illinois law will govern the agreement, regardless of what the standard agreement states.