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What is the significance of Section 41 of the Illinois Franchise Disclosure Act for Checkers?

Q: What is the significance of Section 41 of the Illinois Franchise Disclosure Act for Checkers?

- 5. 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. - 6. 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 Source: Item 22 — CONTRACTS (FDD pages 91–92)

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

1. 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.
1. 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

Source: Item 22 — CONTRACTS (FDD pages 91–92)

What This Means (2025 FDD)

According to Checkers' 2025 Franchise Disclosure Document, Section 41 of the Illinois Franchise Disclosure Act is significant because it prevents franchisees from waiving their rights under the Act or any other Illinois law. This protection is explicitly incorporated into the Illinois Rider to both the Franchise Agreement and the Development Agreement. This means any clause that appears to force a franchisee to give up their rights under Illinois law is legally void.

Specifically, the FDD states that no statement signed by a Checkers franchisee can be interpreted as a waiver of fraud claims or a disclaimer of reliance on information provided by the franchisor. This ensures that franchisees can pursue legal action if they believe they were misled during the franchise sales process, regardless of any agreements they may have signed. This provision overrides any conflicting terms in any document related to the franchise agreement.

For a prospective Checkers franchisee in Illinois, this is a crucial safeguard. It means they cannot be forced to forfeit their legal rights under the Illinois Franchise Disclosure Act. This protection offers recourse if the franchisee believes Checkers made fraudulent claims or withheld important information that influenced their decision to invest in the franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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