Does Checkers approve franchise applications in reliance on statements made by the franchisee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.03 Your Representations. You and your Owners, if applicable, represent and warrant to us that: (a) neither you nor any of your Owners have made any untrue statement of any material fact or have omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Owners have any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business, except as otherwise fully and accurately disclosed in your franchise application submitted to us; and (c) the execution and performance of this Agreement will not violate any other agreement to which you or any of your Owners may be bound. You recognize that we have approved your franchise application in reliance on all of the statements you and your Owners have made in connection therewith.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers does approve franchise applications in reliance on the statements made by the franchisee. Specifically, Checkers requires the franchisee and any owners to represent and warrant that they have not made any untrue statements of material fact or omitted any material fact when obtaining franchise rights. They also must disclose any direct or indirect interest in a competitive business. Additionally, they must confirm that executing the franchise agreement does not violate any other agreements they may be bound by.
Checkers states that it has approved the franchise application based on the statements made by the franchisee and their owners in connection with the application. This means that the accuracy and completeness of the information provided in the franchise application are critical. Any misrepresentation or omission could potentially lead to legal issues or termination of the franchise agreement.
This reliance on franchisee statements is a common practice in franchising. Franchisors need to assess the suitability and financial stability of potential franchisees, and the application process is a key part of that assessment. Prospective Checkers franchisees should ensure that all information provided in their application is accurate, truthful, and complete to avoid any future complications.