What is the effect of the Checkers Existing Franchisee Incentive Addendum on conflicts with the Franchise Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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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' 2025 Franchise Disclosure Document, the Existing Franchisee Incentive Addendum modifies the original Franchise Agreement. The addendum is attached to and becomes part of the Franchise Agreement, with all undefined capitalized terms retaining the meanings as defined in the original agreement.
Except for the specific modifications outlined in the addendum, the Franchise Agreement remains fully effective. Critically, in the event of any conflict between the terms of the addendum and the original Franchise Agreement, the provisions of the addendum will take precedence. This ensures that the incentives and conditions outlined in the addendum are prioritized and govern the relationship between Checkers and the franchisee to the extent of the conflict.
This clause is standard in franchise addenda. It clarifies that the original agreement remains the foundation of the relationship but that the addendum's specific changes or incentives are controlling where discrepancies arise. For a Checkers franchisee, this means carefully reviewing both the Franchise Agreement and any addenda to understand their complete rights and obligations, giving particular attention to areas where the addendum modifies or supersedes the original agreement.