Under what circumstances is the Checkers Rider executed?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Checkers/Rally's April 2025
RIDER TO THE CHECKERS DRIVE-IN RESTAURANTS, INC. FRANCHISE AGREEMENT FOR USE IN CALIFORNIA, INDIANA, MICHIGAN, RHODE ISLAND, AND WISCONSIN
This Rider DRIVE-IN RESTAURANTS, INC., a Delaware Street, Suite 710, Tampa, Florida , ("Franchisee"). (the "Rider") is made and entered into by and between CHECKERS corporation located at 4300 West Cypress 33607 ("Franchisor"), and whose principal business address is 1. Background. Franchisor and Franchisee are parties to that certain Franchise Agreement that has been signed at the same time as the signing of this Rider (the "Franchise Agreement"). This Rider is part of the Franchise Agreement. 2. The following No Waiver of Disclaimer of Reliance in Certain States. provision applies only to franchisees and franchises that are subject to the state franchise disclosure laws in California, Indiana, Michigan, Rhode Island, or Wisconsin: No statement, questionnaire or acknowledgment signed or agreed to by a franchisee the in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or any other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise. IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Effective Date stated in the Franchise Agreement. CHECKERS DRIVE-IN RESTAURANTS, INC. A Delaware Corporation
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, a Rider to the Franchise Agreement is executed under specific circumstances, primarily related to state franchise laws. For franchisees operating in or residing in Illinois, Minnesota, or Virginia, a rider is added to the franchise agreement to address the requirements of the Illinois Franchise Disclosure Act, the Minnesota Franchise Law, or the Virginia Retail Franchising Act, respectively. These riders ensure that the franchise agreement complies with state-specific regulations.
In Illinois and Virginia, the Rider addresses the initial franchise fee, stipulating that Checkers will defer collection of initial 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 or the Virginia State Corporation Commission's Division of Securities and Retail Franchising based on Checkers' audited financial statements. Additionally, the Virginia Rider includes a provision ensuring that no disclaimer signed by the franchisee can waive claims of fraud or reliance on statements made by Checkers.
For franchisees in California, Indiana, Michigan, Rhode Island, and Wisconsin, a rider is executed to ensure that no statement or acknowledgment signed by the franchisee waives claims under state franchise law, including fraud in inducement, or disclaims reliance on statements made by Checkers. This provision supersedes any other term in the franchise agreement. These riders are annexed to and form part of the Franchise Agreement, becoming effective when the jurisdictional requirements of the relevant state laws are met independently.