What is the agreement discussed in this section called for Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| In consideration of, and as an inducement to, the execution of the Franch | ise |
|---|---|
| Agreement dated as of, (the "Agreement") by a | nd |
| between CHECKERS DRIVE-IN RESTAURANTS, INC. ("Franchisor"), a | nd |
| ("Franchisee"), each of the undersigned owners of | an |
| nterest in Franchisee hereby personally and unconditionally: (1) guarantees | to |
| Franchisor and its successors and assigns, for the term of the Agreement a | nd |
| hereafter as provided in the Agreement, that Franchisee shall punctually pay a | nd |
| perform each and every undertaking, agreement and covenant set forth in t | he |
| Agreement and that each and every representation of Franchisee made | in |
| connection with the Agreement are true, correct and complete in all respects at a | nd |
| as of the time given; and (2) agrees personally to be bound by, and personally lial | ble |
| or the breach of, each and every provision in the Agreement, including without | out |
| imitation, Sections 5, 7, 8, 13, 16 and 18 (for the avoidance of doubt, includi | ing |
| Section 18.05) thereof. |
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, the agreement discussed in Item 22 is referred to as the "Franchise Agreement". This agreement outlines the terms and conditions under which a franchisee is granted the right to operate a Checkers restaurant.
The Franchise Agreement covers various aspects of the franchise relationship, including the grant of rights, responsibilities of the franchisee, and the obligations of Checkers as the franchisor. It also includes details about the initial franchise fee, the term of the agreement, and conditions for renewal or termination. The agreement also specifies that the franchisee has read the document and understands the terms and conditions outlined within it.
Several riders may modify the Franchise Agreement based on the franchisee's location. For example, an Illinois Rider modifies sections of the agreement to comply with the Illinois Franchise Disclosure Act. Similarly, a rider exists for franchisees in California, Indiana, Michigan, Rhode Island, and Wisconsin to ensure compliance with state-specific franchise laws. These riders highlight the importance of understanding how state laws can impact the franchise agreement and the franchisee's rights.