What is the effect of the Checkers Existing Franchisee Incentive Addendum on the provisions of the Franchise Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
|-------------------------------------------------------------------------------------------|----|-----------|----------------------------------------------------------------|---------|----| | | | dated of even date herewith (the "Franchise Agreement") pursuant to which Franchisee will | | | | | | | operate | another | "Checkers" (the "Franchised Restaurant"); | or | "Rally's" | restaurant | located | at | WHEREAS, Franchisee desires to qualify for and receive, the benefits of the Incentive; 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:
-
- 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.
-
- 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, the Existing Franchisee Incentive Addendum modifies the original Franchise Agreement. The Addendum is attached to the Franchise Agreement and becomes a part of it. Unless specifically defined in the Addendum, all capitalized terms retain the meanings defined in the original Franchise Agreement. The Franchise Agreement remains fully effective except for the specific modifications outlined in the Addendum. In case of any conflict between the Addendum and the Franchise Agreement, the terms of the Addendum will take precedence. References to sections, subsections, and exhibits refer to those within the Franchise Agreement, unless otherwise stated in the Addendum. The recitals included in the addendum are incorporated by reference.
To qualify for the Existing Franchisee Incentive, franchisees must meet certain conditions. They must be current franchisees in good standing, fully compliant with all existing agreements with Checkers or its affiliates. Franchisees must also commit to opening the new franchised restaurant within one year of signing the Franchise Agreement.
The Existing Franchisee Incentive includes a reduction in the initial franchise fee. Specifically, Section 6.01 of the Franchise Agreement is revised to reflect a $10,000 reduction in the initial franchise fee. This reduction, termed the "Initial Fee Reduction," is applied to the standard initial franchise fee for a new restaurant. This incentive is designed to encourage existing franchisees to expand their operations with the Checkers brand.