Under the Checkers Franchise Agreement, what condition must be met for the Minnesota Rider to be effective?
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's 2025 Franchise Disclosure Document, the Minnesota Rider to the franchise agreement is only effective if the jurisdictional requirements of the Minnesota Franchise Law and its regulations are independently met, without relying on the Rider itself. This condition applies whether the franchisee is located in Minnesota or is a resident of Minnesota.
In practical terms, this means that Checkers must ensure it complies with all aspects of Minnesota's franchise laws separately from any provisions outlined in the Rider. The Rider serves to modify the standard franchise agreement to align with Minnesota law, but it does not substitute for direct compliance.
For a prospective Checkers franchisee in Minnesota, this clause offers some protection. It ensures that Checkers cannot use the Rider to circumvent any obligations under Minnesota law. The franchisee should still carefully review the entire franchise agreement and Rider with legal counsel to fully understand their rights and obligations under both documents and Minnesota state law.