How are capitalized terms defined in the Checkers Existing Franchisee Incentive Addendum?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee desires to qualify for and receive, the benefits of the Incentive; and
WHEREAS, the Parties now desire to modify the Franchise Agreement according to the terms and conditions set forth in this Addendum.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
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- Relationship to Franchise Agreement; Recitals. This Addendum shall be annexed to and form a part of the Franchise Agreement. All capitalized terms not otherwise defined in this Addendum shall have the meanings set forth in the Franchise Agreement. Except as modified by this Addendum, the Franchise Agreement remains in full force and effect. Any conflict between the provisions hereof and the Franchise Agreement shall be construed in favor of this Addendum. All references in this Addendum to "Sections," "Subsections," and/or "Exhibits" shall mean the applicable Section(s), Subsection(s), and/or Exhibit(s) of the Franchise Agreement, unless specified otherwise below. The Recitals above are incorporated into this Addendum by reference.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the Existing Franchisee Incentive Addendum defines capitalized terms by reference to the Franchise Agreement. Specifically, any capitalized terms within the addendum that are not explicitly defined within the addendum itself will carry the same meaning as defined in the main Franchise Agreement.
This means that a prospective Checkers franchisee needs to be familiar with the definitions in the Franchise Agreement to fully understand the Existing Franchisee Incentive Addendum. It is important to review the Franchise Agreement carefully to understand the precise meaning of these terms, as they can have legal and financial implications.
For example, terms like "Franchised Restaurant," "Franchisor," "Franchisee," or other key concepts related to the operation of the franchise are likely defined in the main Franchise Agreement. The addendum uses these pre-existing definitions to avoid redundancy and ensure consistency across all franchise-related documents. If there is a conflict between the Franchise Agreement and the addendum, the addendum will take precedence.