What is the effect of the Checkers Existing Franchisee Incentive Addendum on capitalized terms?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee desires to qualify for, and to receive the benefits of, the Incentive in connection with its operation of the Franchised Restaurant under the Franchise Agreement; and
WHEREAS, the Parties now desire to modify the Franchise Agreement according to the terms and conditions set forth in this Addendum.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
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- Relationship to Franchise Agreement; Recitals. This Addendum shall be annexed to and form a part of the Franchise Agreement. All capitalized terms not otherwise defined in this Addendum shall have the meanings set forth in the Franchise Agreement. Except as modified by this Addendum, the Franchise Agreement remains in full force and effect. Any conflict between the provisions hereof and the Franchise Agreement shall be construed in favor of this Addendum. All references in this Addendum to "Sections," "Subsections," and/or "Exhibits" shall mean the applicable Section(s), Subsection(s), and/or Exhibit(s) of the Franchise Agreement, unless specified otherwise below. The Recitals above are incorporated into this Addendum by reference.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the Existing Franchisee Incentive Addendum clarifies the meaning of capitalized terms used within the document. Specifically, any capitalized terms that are used in the addendum but not explicitly defined within it will carry the same meaning as defined in the original Franchise Agreement.
This ensures consistency and avoids confusion by linking the addendum's terminology back to the master agreement. The addendum states that, unless specifically modified by the addendum itself, the original Franchise Agreement remains fully in effect. This means that all the terms, conditions, and definitions outlined in the Franchise Agreement continue to apply, except where the addendum explicitly states otherwise.
Furthermore, in case of any conflict between the addendum and the Franchise Agreement, the terms of the addendum will take precedence. This is important for franchisees to note, as the incentive program's specific conditions or benefits outlined in the addendum will override any conflicting clauses in the original agreement. Franchisees should carefully review both documents to understand their rights and obligations fully, paying close attention to any areas where the addendum modifies or supersedes the original Franchise Agreement.