In the Checkers Development Agreement, what representations do franchisees make regarding untrue statements?
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, franchisees and their owners make specific representations regarding the accuracy of information provided to Checkers. Specifically, franchisees represent that neither they nor their owners have made any untrue statement of material fact or omitted any material fact when obtaining franchise rights. This representation is crucial because Checkers relies on the accuracy of the franchisee's application when approving it.
This means that a prospective Checkers franchisee must ensure that all information provided in their franchise application is truthful, accurate, and complete. Any misrepresentation or omission, even if unintentional, could potentially lead to legal issues or termination of the agreement. This requirement underscores the importance of due diligence and transparency on the part of the franchisee during the application process.
Furthermore, franchisees also represent that they and their owners do not have any undisclosed direct or indirect legal or beneficial interest in any competitive business. They also confirm that entering into the Development Agreement will not violate any other agreements they or their owners are bound by. These representations are designed to protect Checkers' interests and ensure the franchisee's full commitment to the Checkers system.