What documents relating to ownership, organization, capitalization, management, and control must a Checkers franchisee provide to the franchisor?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Organizational Documents. If you are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, you and each of your Owners represent, warrant and agree that: (a) you are duly organized and validly existing under the laws of the state of your organization, and, if a foreign business corporation, partnership, limited liability company or other legal entity, you are duly qualified to transact business in the state in which the Franchised Restaurant is located; (b) your undersigned signatory below has the authority to execute and deliver this Agreement on your behalf and that you are able and authorized to perform your obligations hereunder; (c) true and complete copies of the articles of incorporation, partnership agreement, bylaws, subscription agreements, buy-sell agreements, voting trust agreements and all other documents relating to your ownership, organization, capitalization, management and control have been delivered to us and all amendments thereto shall be promptly delivered to us; (d) your activities are restricted to those necessary solely for the development, ownership and operation of Restaurants in accordance with this Agreement and in accordance with any other agreements entered into with us or any of our Affiliates; (e) the articles of incorporation, partnership agreement or other organizational documents recite that the issuance, transfer or pledge of any direct or indirect legal or beneficial ownership interest is restricted by the terms of this Agreement; and (f) all
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if a franchisee is a business corporation, partnership, limited liability company, or other legal entity, they must provide true and complete copies of several documents to Checkers. These documents relate to the franchisee's business structure and operations.
The specific documents that Checkers requires include the articles of incorporation, partnership agreement, bylaws, subscription agreements, buy-sell agreements, voting trust agreements, and all other documents relating to the franchisee's ownership, organization, capitalization, management, and control. Furthermore, franchisees must promptly deliver any amendments to these documents to Checkers.
This requirement ensures that Checkers has a comprehensive understanding of the franchisee's business structure, ownership, and operational controls. This allows Checkers to assess the franchisee's ability to meet its obligations under the franchise agreement and to monitor compliance with the franchise agreement's terms. This is a fairly standard requirement in franchising, as franchisors typically want to ensure that franchisees are properly organized and managed.