Does the Checkers Development Agreement require franchisees to acknowledge they've read the Franchise Disclosure Document?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
This Franchise Disclosure Document for Checkers Restaurants and Rally's Restaurants summarizes certain provisions of the franchise agreement and other information in plain language. Read this Franchise Disclosure Document and all agreements carefully.
If Checkers Drive-In Restaurants, Inc. ("Checkers") offers you a franchise, Checkers must provide this Franchise Disclosure Document to you 14 calendar days before you sign a binding agreement with, or make a payment to us or an affiliate of ours in connection with the proposed franchise sale, or sooner if required by applicable state law. Applicable state law in (a) Michigan requires us to provide you the Franchise Disclosure Document at least 10 business days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale and (b) New York and Rhode Island require us to provide you the Franchise Disclosure Document the earlier of the first personal meeting or 10 business days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
If Checkers does not deliver this Franchise Disclosure Document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and any applicable state agency.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, both the Franchise Disclosure Document for Checkers Restaurants and Rally's Restaurants summarize certain provisions of the franchise agreement and other information in plain language. The document explicitly advises potential franchisees to read the Franchise Disclosure Document and all agreements carefully.
Checkers must provide the Franchise Disclosure Document to a prospective franchisee 14 calendar days before they sign a binding agreement or make a payment in connection with the proposed franchise sale. However, state laws may vary this requirement. For example, in Michigan, the document must be provided at least 10 business days before signing or payment, while New York and Rhode Island require it the earlier of the first personal meeting or 10 business days before signing or payment.
The FDD also states that if Checkers does not deliver the Franchise Disclosure Document on time, or if it contains false or misleading statements or material omissions, it could be a violation of federal and state law. Such violations should be reported to the Federal Trade Commission and any applicable state agency.
Item 23 includes a receipt form that franchisees must sign and return to Checkers, acknowledging they have received the FDD. This receipt serves as confirmation that Checkers has met its disclosure obligations and that the franchisee has been informed of their rights and responsibilities.