For Checkersrallys franchises in California, what is the potential issue with the Franchise Agreement and Development Agent Agreement requiring application of the laws of the State of Florida?

According to Checkersrallys's 2025 Franchise Disclosure Document, a potential issue exists for franchisees in California because the Franchise Agreement and Development Agent Agreement require the application of Florida law. Specifically, Item 23 of the FDD indicates that this provision might not be enforceable under California law.

This is important for prospective Checkersrallys franchisees in California because California law may offer different or more protective rights compared to Florida law. If a dispute arises, the franchisee might expect California law to apply, but the agreement stipulates Florida law. This could affect how the dispute is resolved, potentially disadvantaging the franchisee if Florida law is less favorable in that particular situation.

To protect their interests, prospective Checkersrallys franchisees in California should consult with legal counsel to understand the specific differences between California and Florida law in the context of franchise agreements. They should also determine the enforceability of the Florida law provision in California, and how it might impact their rights and obligations under the franchise agreement and development agent agreement.