What specific sections are amended regarding governing law in the Checkers agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
- Miscellaneous. Sections 18.05, 18.07 and 18.08 shall be amended by adding the following:
"Pursuant to Minn. Stat. Sec. 80C.21 and Minn. Rule Part 2860.4400J, this section shall not in any way abrogate or reduce any rights of the franchisee as provided for in Minnesota Statutes, Chapter 80C."
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, there are amendments to the governing law sections of the franchise agreement, particularly concerning Illinois and Minnesota law. For Illinois, Section 18.08 of the agreement is amended to specify that Illinois law will govern the agreement, regardless of any other provision. This is further reinforced by stating that any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void.
For franchisees in Minnesota, Section 18.08 is amended to ensure that the section does not diminish any rights provided to the franchisee under Minnesota Statutes, Chapter 80C, as per Minn. Stat. Sec. 80C.21 and Minn. Rule Part 2860.4400J. This means that while the franchise agreement may have a general governing law clause, Minnesota franchisees retain all the protections afforded to them under Minnesota law.
These amendments are crucial for prospective franchisees as they clarify which state's laws will govern the agreement, ensuring that franchisees are aware of their rights and protections under those specific state laws. This is especially important in states like Illinois and Minnesota, which have franchise-specific laws designed to protect franchisees. Franchisees should consult with legal counsel to fully understand the implications of these governing law provisions and how they affect their rights and obligations under the franchise agreement.