What is the relationship between the Rider and the Franchise Agreement for Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT J AGREEMENT RIDERS FOR CERTAIN REGISTRATION STATES
ILLINOIS RIDER TO THE FRANCHISE AGREEMENT
In recognition of the requirements of the Illinois Franchise Disclosure Act and the rules and regulations promulgated thereunder, the Franchise Agreement shall be modified by this document (the "Rider") as follows:
MINNESOTA RIDER TO THE FRANCHISE AGREEMENT
In recognition of the requirements of the Minnesota Franchise Law and the rules and regulations promulgated thereunder, the Franchise Agreement shall be modified by this document (the "Rider") as follows:
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:
VIRGINIA RIDER TO THE FRANCHISE AGREEMENT
In recognition of the requirements of the Virginia Retail Franchising Act and the rules and regulations promulgated thereunder, the Franchise Agreement shall be modified by this document (the "Rider") as follows:
MARYLAND RIDER TO THE FRANCHISE AGREEMENT
In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law and the rules and regulations promulgated thereunder, the Franchise Agreement shall be modified by this document (the
10.11 Construction. The language of this Agreement shall be construed according to its fair meaning and not strictly for or against any party. The introduction, personal guarantees, exhibits and riders (if any) to this Agreement are a part of this Agreement, which constitutes the entire agreement of the parties. Except as otherwise expressly provided herein, there are no other oral or written agreements, understandings, representations or statements between us and you relating to the subject matter of this Agreement that either party may or does rely on or that will have any force or effect, except that nothing in this Agreement shall disclaim or require you to waive reliance on any representation we made in our most recent
Franchise Disclosure Document (including that document's exhibits and amendments) delivered to you or your representative. Nothing in this Agreement is intended or shall be deemed to confer any rights or remedies on any person or legal entity not a party hereto. This Agreement shall not be modified except by written agreement signed by both parties.
The Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owed by franchisees to the franchisor until the franchisor has completed its preopening obligations under the franchise agreement.
The Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to defer payment of the development fee and other initial payments owed by area franchisees to the franchisor until the franchisor has completed all of its preopening obligations under the first franchise agreement entered into pursuant to the development agreement.
- In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, Item 17.h. of the Franchise Disclosure Document for Checkers Drive-In Restaurants, Inc. is supplemented by the following:
Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any ground for default or termination stated in the franchise agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
Payment of all initial fees due under the Franchise Agreement is deferred until franchisor has completed all of its pre-opening obligations under the Franchise Agreement. Payment of all initial fees due under the Development Agreement is deferred until franchisor has completed all of its pre-opening obligations under the first franchise agreement entered into pursuant to the Development Agreement.
Notwithstanding anything to the contrary set forth in the Franchise Disclosure Document, the following provisions shall supersede and apply to all Franchises offered and sold in the State of Maryland:
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Rider modifies the Franchise Agreement in specific ways, particularly to address state-specific legal requirements. For instance, Riders are included for states like Illinois, Minnesota, New York, Virginia, and Maryland to ensure compliance with their respective franchise laws. These Riders can alter specific terms of the Franchise Agreement to align with state regulations.
In Virginia, the Rider addresses the Virginia Retail Franchising Act, modifying Item 17.h of the Franchise Disclosure Document to clarify that Checkersrallys cannot terminate a franchise without reasonable cause as defined by Virginia law. Additionally, the Rider stipulates that payment of the development fee can be deferred until Checkersrallys has met its pre-opening obligations. Similarly, the Maryland Rider ensures that certain provisions, such as those related to bankruptcy termination, general releases, choice of forum, and statutes of limitations, comply with the Maryland Franchise Registration and Disclosure Law. It also defers initial fee payments until Checkersrallys completes its pre-opening obligations.
The Minnesota and New York Riders also serve to modify the Franchise Agreement to comply with their respective state franchise laws. Furthermore, the language of the Franchise Agreement states that exhibits and riders are part of the agreement, which constitutes the entire agreement of the parties. This means that the Riders are legally binding and integral to the overall contract between Checkersrallys and the franchisee. Franchisees should carefully review any state-specific Riders to understand how they alter the standard Franchise Agreement and what additional rights or obligations they may have.
Overall, the Riders play a crucial role in tailoring the Checkersrallys Franchise Agreement to meet the legal requirements of different states, providing additional protections or clarifications for franchisees in those jurisdictions. Prospective franchisees should pay close attention to these Riders, as they can significantly impact their rights and obligations under the Franchise Agreement.