Under what circumstances regarding location or residency is the Rider to the Checkers Development Agreement executed?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
inconsistent term of any document executed in connection with the franchise.
| CHECKERS DRIVE-IN RESTAURANTS, INC. A Delaware Corporation | FRANCHISEE |
|---|---|
| By: | By: |
| Title: | Title: |
MINNESOTA RIDER TO THE DEVELOPMENT AGREEMENT
In recognition of the requirements of the Minnesota Franchise Law and the rules and regulations promulgated thereunder, the Development Agreement shall be modified by this document (the "Rider") as follows:
| 1. | Background. Franchisor and Area Franchisee are parties to that certain Development |
|---|---|
| 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 Restaurant(s) to be | |
| developed by Area Franchisee pursuant to the Agreement will be located in the State | |
| of Minnesota and/or because Franchisee is a resident of the State of Minnesota. This | |
| Rider shall be of no force and effect unless the jurisdictional requirements of the | |
| Minnesota Franchise Law and any regulations thereunder are met independently | |
| without reference to this Rider. |
- Area Franchisee's Right to Transfer. Section 7.02 is amended by the inclusion of the following:
Under Minn. Rule 2860.4400D, we are prohibited from requiring you to sign a general release.
- Termination of Agreement. Sections 8.01 and 8.02 shall be amended by adding the following:
"With respect to franchises governed by Minnesota law, the franchisor will comply with Minn. Stat. Sec. 80C.,14 Subds. 3, 4, and 5 which require, except in certain specified cases, that a franchisee be given 90 days notice of termination (with 60 days to cure) and 180 days notice for non-renewal of the franchise agreement.
- Miscellaneous. Sections 10.05 and 10.09 are amended by the inclusion of the following:
Under Minn. Rule 2860.4400J, a franchisee cannot waive any rights, and the franchisee cannot consent to the franchisor obtaining injunctive relief, although the franchisor may seek injunctive relief. The court will also determine whether a bond is required.
- Miscellaneous. Sections 10.06 and 10.07 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."
- Miscellaneous. Section 10.06 is amended further by the inclusion of the following:
Minnesota Rule 2860.4400J prohibits the waiver of a jury trial.
Checkers/Rally's April 2025
- 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 disclaiming reliance on or the right to rely upon any statement made or information provided by any franchisor, broker or other person acting on behalf of the franchisor that was a material inducement to a franchisee's investment. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
| CHECKERS DRIVE-IN RESTAURANTS, INC. A Delaware Corporation | AREA FRANCHISEE |
|---|---|
| By: | By: |
| Title: | Title: |
NEW YORK RIDER TO THE FRANCHISE AGREEMENT
In recognition of the requirements of the New York General Business Law 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 New York and/or because Franchisee is a resident of the State of New York. This Rider shall be of no force and effect unless the jurisdictional requirements of the New York General Business and any regulations thereunder are met independently without reference to this Rider.
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- Releases. Sections 13.02(i) and 15.03 are amended by the inclusion of the following:
- ", provided, however, that to the extent required by Article 33 of the General Business Law of the State of New York, all rights Franchisee enjoys and any causes of action arising in 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; it being the intent of the proviso that the non-waiver provisions of GBL 687 and 687.5 be satisfied."
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- Franchisor's Right to Transfer. The following is added as a new Section 13.08:
- "However, to the extent required by applicable law, no assignment will be made except to an assignee who, in Franchisor's good faith judgment, is willing and able to assume Franchisor's obligations under this Agreement."
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- Termination of Agreement. Sections 14.01 and 14.02 shall be amended by adding the following:
- "Franchisee may terminate this Agreement on any grounds available by law under the provisions of Article 33 of the General Business Law of the State of New York."
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- Governing Law. Sections 18.05 and 18.07 shall be amended by adding the following:
- "However, to the extent required by Article 33 of the General Business Law of the State of New York, this Section shall not be considered a waiver of any right conferred upon Franchisee by the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder."
Checkers/Rally's April 2025
- Limitations on Legal Actions. Sections 18.03 and 18.10 shall be amended by adding the following:
"To the extent required by Article 33 of the General Business Law of the State of New York, all rights and any causes of action arising in 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; it being the intent of this provision that the non-waiver provisions of GBL Sections 687.4 and 687.5 be satisfied."
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- Application of Rider. There are circumstances in which an offering made by Franchisor would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the State of New York. However, an offer or sale is deemed to be made in New York if Franchisee is domiciled, and the franchise will be opened, in New York. Franchisor is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33.
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- 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 disclaiming reliance on or the right to rely upon any statement made or information provided by any franchisor, broker or other person acting on behalf of the franchisor that was a material inducement to a franchisee's investment. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
| CHECKERS DRIVE-IN RESTAURANTS, INC.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, a Rider to the Checkers Development Agreement is executed when the restaurants to be developed under the agreement will be located in specific states, or when the franchisee is a resident of those states. For example, there are specific riders for franchisees in California, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, Rhode Island, Virginia, and Wisconsin.
These riders modify the standard Development Agreement to comply with the franchise laws of those particular states. The riders themselves have no force unless the jurisdictional requirements of the relevant state's franchise law are independently met, without relying on the rider itself.
For a prospective Checkers franchisee, this means that the terms of their Development Agreement may vary depending on where they plan to develop restaurants and where they reside. They should carefully review any state-specific rider to understand how it modifies the standard agreement and what additional rights or obligations it creates under the applicable state laws. It is also important to ensure that the jurisdictional requirements of the relevant state's franchise law are met independently of the rider.