What is the effect of the Checkers Existing Franchisee Incentive Addendum on the receipt and sufficiency of consideration?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
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 modifies the franchise agreement in exchange for "good and valuable consideration." The addendum explicitly states that "the receipt and sufficiency of which are hereby acknowledged," meaning both parties agree that the incentive being offered is adequate and valid consideration for the modifications to the original agreement.
For existing Checkers franchisees, this means that by meeting the qualifications outlined in the addendum, such as being a franchisee in good standing and opening the new restaurant within one year, they are entitled to the incentive. The incentive serves as sufficient consideration for any modifications to the original franchise agreement as outlined in the addendum.
However, the addendum also includes conditions under which the franchisee may lose the incentive. For example, if the franchisee requests a transfer before opening the restaurant, or if they breach the agreement, they may be required to pay back the amount of the initial franchise fee that was reduced or waived. This ensures that Checkers receives the full initial franchise fee under certain circumstances, maintaining the balance of consideration between the parties.