Under what condition will the Rider annexed to the Checkers Franchise Agreement be of no force and effect?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | 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 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. |
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Rider annexed to the Franchise Agreement will be of no force and effect unless the jurisdictional requirements of specific state franchise laws are met independently, without relying on the Rider itself. This condition applies to Riders for franchisees in Illinois, Virginia, Minnesota, and New York.
For a prospective Checkers franchisee, this means that the protections and modifications outlined in the Rider for their specific state (e.g., Illinois Franchise Disclosure Act, Virginia Retail Franchising Act, Minnesota Franchise Law, or New York General Business Law) are only valid if the franchisee independently meets the legal requirements of that state's franchise laws. The Rider serves to modify the standard franchise agreement to comply with state-specific regulations, but it doesn't create those protections; it only reinforces them if they already exist under state law.
This condition ensures that Checkers franchisees cannot use the Rider to claim rights or protections under state law if they don't otherwise qualify for those rights under the law itself. It emphasizes the importance of franchisees understanding and meeting all jurisdictional requirements of their state's franchise laws, regardless of the Rider's existence. Franchisees should consult with a legal professional to ensure full compliance with all applicable state laws and regulations.