What is the effect of the Checkers Existing Franchisee Incentive Addendum if the franchisee is not in good standing with Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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- Qualifications. You represent, and in connection with signing this Addendum have provided us (or agree to provide promptly upon our request) relevant supporting documentation, that: (a) you are a current franchisee in good standing
with us, including being in full compliance with all currently effective agreements with us or our affiliates; and (b) you will remain a franchisee in good standing, and comply with all currently effective agreements with us or our affiliates including the Franchise Agreement; and (c) you agree to open the Franchised Restaur
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, to qualify for the Existing Franchisee Incentive Addendum, a franchisee must be in good standing with Checkers. This includes being in full compliance with all currently effective agreements with Checkers or its affiliates.
Specifically, the franchisee must represent that they are a current franchisee in good standing at the time of signing the addendum and agree to remain in good standing. They also must comply with all effective agreements, including the Franchise Agreement, and agree to open the franchised restaurant within one year of signing the Franchise Agreement.
If a franchisee fails to meet these qualifications or falls out of good standing, they would not be eligible for the incentive. The Existing Franchisee Incentive reduces the initial franchise fee by $10,000 from the standard amount for a new restaurant. Therefore, a franchisee not in good standing would not receive this reduction.