What is the definition of 'Franchise Agreement' in the Checkers addendum?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS FRANCHISE ADDENDUM TO LEASE AGREEMENT (this |
|---|
| "Addendum") is entered into this day of, 20, by and between |
| , a(n) (" Landlord ") and |
| , a(n)(" Tenant ") for the benefit |
| of CHECKERS DRIVE-IN RESTAURANTS, INC., a Delaware corporation |
| (" Franchisor "). |
| WHEREAS, Tenant and Franchisor have executed a Franchise Agreement (the " Franchise Agreement "), pursuant to which Franchisor has granted Tenant the right to establish and operate a [Checkers] Franchised Restaurant at the following location: (the " Premises "); |
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the Franchise Agreement is referenced within the Franchise Addendum to Lease Agreement. Specifically, it is defined in relation to the agreement between the Tenant and Checkers, the Franchisor. The Franchise Agreement grants the Tenant the right to establish and operate a Checkers Franchised Restaurant at a specific location, referred to as the 'Premises'.
This definition is important because it clarifies the relationship between the lease agreement, the Franchise Agreement, and the parties involved (Landlord, Tenant, and Franchisor). It confirms that a Franchise Agreement must be in place before a franchisee can operate a Checkers restaurant at a specific location. The addendum essentially ties the lease to the existence and terms of the Franchise Agreement.
Prospective franchisees should understand that securing a lease and entering into a Franchise Agreement are interconnected steps. The lease addendum ensures that the landlord is aware of Checkers's involvement and that the franchisee's rights to operate are contingent upon maintaining a valid Franchise Agreement. This arrangement protects Checkers's brand and operational standards at the location.