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Does the Rider for Checkersrallys apply to all franchisees, or only those in certain states?

Checkersrallys Franchise · 2025 FDD

Answer from 2025 FDD Document

ADDENDUM TO THE CHECKERS DRIVE-IN RESTAURANTS, INC. FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF WISCONSIN

REGISTRATION OF THIS FRANCHISE IN WISCONSIN DOES NOT MEAN THAT THE STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT.

The conditions under which the Franchise Agreement can be terminated or not renewed may be affected by the Wisconsin Fair Dealership Law, Wisconsin Statutes 1981- 82, Title XIV-A, Chapter 135.

EXHIBIT J AGREEMENT RIDERS FOR CERTAIN REGISTRATION STATES


ADDENDUM TO THE CHECKERS DRIVE-IN RESTAURANTS, INC. FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF MARYLAND

The following paragraph is added at the end of Item 5 of the Disclosure Document:

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:

The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C.A. Sec. 101 et seq.).

Pursuant to COMAR 02.02.08 16L, the general release required as a condition of renewal and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.

Any clause(s) referencing choice of forum is not applicable to claims arising under the Maryland Franchise Registration and Disclosure Law.

The following language is added to Item 17:

Any general releases you sign will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. (See Exhibit K to the Franchise Disclosure Document for the form of general release that we currently intend to use in connection with franchise transfers and renewals.)

Any limitation on the period of time arbitration and/or litigation claims must be brought shall not act to reduce the 3 year statute of limitations afforded a franchisee for bringing a claim arising under the Maryland Franchise Registration and Disclosure Law.

Checkers/Rally's April 2025

    1. Limitations on Legal Actions. Sections 10.03 and 10.09 shall be amended by adding the following:
    • "To the extent required by Article 33 of the General Business Law of the State of New York, all rights and any causes of action arising in Franchisee's favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this provision that the non-waiver provisions of GBL Sections 687.4 and 687.5 be satisfied."
    1. Application of Rider. There are circumstances in which an offering made by Franchisor would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the State of New York. However, an offer or sale is deemed to be made in New York if Franchisee is domiciled, and the franchise will be opened, in New York. Franchisor is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33.

| 1. | Background. Franchisor and Area Franchisee are parties to that certain Development 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 Restaurant(s) to be developed by Area Franchisee pursuant to the Agreement will be located in the Commonwealth of Virginia. This Rider shall be of no force and effect unless the jurisdictional requirements of the Virginia Retail Franchising Act and any regulations thereunder are met independently without reference to this Rider. |

ADDENDUM TO THE CHECKERS DRIVE-IN RESTAURANTS, INC. FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF MICHIGAN

THIS ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT OF CHECKERS DRIVE-IN RESTAURANTS, INC. REFLECTS CERTAIN REQUIREMENTS OF THE STATE OF MICHIGAN. IT IS BEING PROVIDED TO YOU AT THE SAME TIME AS THE FRANCHISE DISCLOSURE DOCUMENT REQUIRED BY THE FEDERAL TRADE COMMISSION, AND SHOULD BE REVIEWED IN CONJUNCTION WITH THE FRANCHISE DISCLOSURE DOCUMENT, OF WHICH THIS IS MADE A PART.

THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU.

ADDENDUM TO THE CHECKERS DRIVE-IN RESTAURANTS, INC. FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF MINNESOTA

  1. Item 13 is amended by the addition of the following language:

The franchisor will protect the franchisee's righ

Source: Item 23 — RECEIPTS (FDD pages 92–384)

What This Means (2025 FDD)

According to the 2025 Checkersrallys Franchise Disclosure Document, the franchise agreement includes state-specific addenda and riders that apply only to franchisees operating in those particular states. For example, there are addenda specific to Michigan, Maryland, and Minnesota which address specific legal requirements or modifications to standard franchise terms within those jurisdictions. Similarly, a rider is included for franchisees in Virginia, addressing the Virginia Retail Franchising Act.

For prospective Checkersrallys franchisees, this means the terms of their franchise agreement can vary depending on the state where they plan to operate. These state-specific addenda often relate to franchise law, consumer protection, and dispute resolution. For instance, the Maryland addendum modifies termination provisions related to bankruptcy and clarifies the application of general releases and forum selection clauses under Maryland law. The Michigan addendum notes certain unfair provisions that are void and unenforceable if contained in any documents relating to a franchise.

It is important for potential Checkersrallys franchisees to carefully review the addendum or rider (if any) that applies to their state, as these documents can significantly impact their rights and obligations. These state-specific provisions often modify or supersede the standard terms of the franchise agreement to comply with local laws. Franchisees should consult with an attorney to fully understand the implications of these state-specific provisions and how they affect their franchise agreement.

Therefore, the Rider for Checkersrallys does not apply to all franchisees, but only to those in certain states, such as Virginia, New York, Wisconsin, Maryland, Michigan, and Minnesota, each having its own specific rider or addendum addressing state-specific legal requirements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.