What is the consideration for the Checkers Existing Franchisee Incentive Addendum?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
|-------------------------------------------------------------------------------------------|----|-----------|----------------------------------------------------------------|---------|----| | | | dated of even date herewith (the "Franchise Agreement") pursuant to which Franchisee will | | | | | | | operate | another | "Checkers" (the "Franchised Restaurant"); | or | "Rally's" | restaurant | located | at | 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:
-
- 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.
-
- Qualifications. You represent, and in connection with signing this Addendum have provided us (or agree to provide promptly upon our request) relevant supporting documentation, that: (a) you are a current franchisee in good standing
with us, including being in full compliance with all currently effective agreements with us or our affiliates; and (b) you will remain a franchisee in good standing, and comply with all currently effective agreements with us or our affiliates including the Franchise Agreement; and (c) you agree to open the Franchised Restaur
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Existing Franchisee Incentive Addendum modifies the standard Franchise Agreement for existing franchisees who qualify for an incentive program. This incentive program reduces the initial franchise fee by $10,000 if the franchisee opens their restaurant within one year of signing the Franchise Agreement.
The consideration for this addendum is based on the franchisee's qualifications and agreement to certain conditions. To qualify, the franchisee must be a current franchisee in good standing, fully compliant with all existing agreements with Checkers or its affiliates. They must also commit to remaining in good standing and opening the new franchised restaurant within one year of signing the Franchise Agreement.
If the franchisee meets these qualifications, Section 6.01 of the Franchise Agreement is revised to reflect the $10,000 reduction in the initial franchise fee. This reduction is a direct incentive for existing franchisees to expand their operations with Checkers, making it more financially appealing for them to open additional locations. The addendum ensures that the franchisee is committed to rapid development and continued compliance with Checkers' standards.