What state's laws govern the Checkersrallys Franchise Agreement and Development Agent Agreement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The California Business and Professions Code Section 20000 through 20043 provide rights to the Franchisee concerning termination or non-renewal for a Franchise. If the Franchise Agreement or Development Agreement contain a provision that is inconsistent with the law, the law will control.
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The Franchise Agreement and Development Agent Agreement require application of the laws of the State of Florida.
This provision might not be enforceable under California law.
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- Governing Law. Section 10.07 of the Agreement shall be amended further by adding the following:
Despite the provision above, Franchisor and Franchisee agree that Illinois law will govern this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, the Franchise Agreement and Development Agent Agreement generally require application of Florida law. However, this may not be enforceable under California law. Specifically, the FDD states that the Franchise Agreement and Development Agent Agreement require application of the laws of the State of Florida, but this provision might not be enforceable under California law. This means that if a franchisee is located in California, the California Business and Professions Code Sections 20000 through 20043, which provide rights to the franchisee concerning termination or non-renewal for a franchise, will take precedence if the Franchise Agreement or Development Agreement contains a provision inconsistent with California law.
For franchisees in Illinois, the Illinois Attorney General's Office requires that Illinois law governs the franchise agreements. Additionally, any action brought by Checkersrallys or the franchisee against the other must be instituted in a state or federal court located in the State of Illinois. This supersedes any conflicting provisions in the standard agreement.
Prospective franchisees should consult with legal counsel to understand how the governing law provisions will be interpreted and applied in their specific state, especially if they are located in California or Illinois, given the potential conflicts and state-specific regulations.