What documents does Checkers provide to a franchisee upon acceptance of a proposed site?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Upon our acceptance of a proposed site, and provided you have demonstrated the requisite financial and management capabilities, all as above required, we will offer you a franchise to operate a Restaurant at the proposed site by delivering to you our then-current form of standard franchise agreement, together with all standard ancillary documents (including exhibits, riders, collateral assignments of leases, Owner guarantees and other related documents) that we then customarily use in granting franchises for the operation of Restaurants in the state in which the Restaurant is to be located (the "Franchise Agreement"). The Franchise Agreement must be executed by you and your Owners and returned to us not earlier than 7 days and not later than 21 days after we deliver it to you, with payment of the initial fees required thereunder. If we do not receive the fully executed Franchise Agreement and payment of the required initial fees, we may revoke our offer to grant you a franchise to operate a Restaurant at the proposed site and may revoke our acceptance of the proposed site.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, upon acceptance of a proposed site and demonstration of the required financial and management capabilities, Checkers will offer a franchise to operate a restaurant at the proposed site. This offer includes delivering the then-current form of the standard franchise agreement, along with all standard ancillary documents. These ancillary documents include exhibits, riders, collateral assignments of leases, owner guarantees, and other related documents that Checkers customarily uses when granting franchises for restaurant operations in the specific state where the restaurant will be located. This comprehensive package is referred to as the "Franchise Agreement."
The Franchise Agreement must be executed by the franchisee and their owners and returned to Checkers within a specific timeframe. The agreement must be returned no earlier than 7 days and no later than 21 days after Checkers delivers it, along with the required initial fees. This timeline provides the franchisee with a window to review the documents and finalize their decision.
It is crucial for prospective Checkers franchisees to carefully review all documents included in the Franchise Agreement. This includes understanding the terms and conditions outlined in the standard franchise agreement, as well as the implications of any exhibits, riders, and other ancillary documents. Furthermore, franchisees should ensure they can meet the financial obligations, including the initial fees, within the specified timeframe to avoid revocation of the franchise offer. Franchisees should consult with legal and financial advisors to fully understand the implications of the Franchise Agreement before signing.