What is the effect of the Checkers Existing Franchisee Incentive Addendum on references in 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:
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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.
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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's 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. Unless specifically defined in the addendum, all capitalized terms retain the meanings defined in the original Franchise Agreement.
Except for the specific modifications outlined in the addendum, the Franchise Agreement remains fully effective. In case of any conflict between the addendum and the Franchise Agreement, the terms of the addendum take precedence. All references to sections, subsections, and exhibits refer to those within the Franchise Agreement, unless the addendum specifies otherwise.
To qualify for the incentive, a franchisee must be in good standing with Checkers, fully compliant with all existing agreements, and commit to opening the franchised restaurant within one year of signing the Franchise Agreement. If these conditions are met, Section 6.01 of the Franchise Agreement is revised to reflect a $10,000 reduction in the initial franchise fee.