Under what condition will the Virginia Rider for Checkersrallys be of no force and effect?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Virginia Rider is included because the restaurants developed by the Area Franchisee will be located in Virginia. The rider is of no force and effect unless the jurisdictional requirements of the Virginia Retail Franchising Act and any regulations are met independently without reference to the Rider.
This means that the Virginia Rider is only applicable if Checkersrallys adheres to the Virginia Retail Franchising Act and its regulations without relying on the rider itself. In essence, the rider serves as a supplementary document, but the core obligations must be fulfilled independently.
For a prospective Checkersrallys franchisee in Virginia, this implies that they should ensure Checkersrallys is fully compliant with the Virginia Retail Franchising Act, regardless of the existence of the rider. This includes understanding all the requirements and regulations outlined in the Act to protect their investment and rights as a franchisee.