Does the Checkers Development Agreement require franchisees to disclose any interest in a competitive business?
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 must disclose any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business. This disclosure must be full and accurate within the franchise application submitted to Checkers.
This requirement ensures that Checkers is aware of any potential conflicts of interest before entering into a franchise agreement. By requiring this disclosure, Checkers aims to protect its brand, market share, and overall business interests. The franchisee's representations are critical, as Checkers approves franchise applications based on the accuracy of these statements.
Furthermore, the franchisee and their owners warrant that they have not made any untrue statement of material fact or omitted any material fact when obtaining the rights granted under the agreement. The execution and performance of the agreement must not violate any other agreement to which the franchisee or their owners may be bound. This comprehensive disclosure and representation clause underscores the importance of transparency and honesty in the franchise relationship.