Where can I find copies of the guarantees that owners of a legal entity franchisee must sign for Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Personal Guarantee: Franchisees and all owners must sign a personal guarantee, making you and your spouse individually liable for your financial obligations under the agreement if you are married. The guarantee will place your and your spouse's marital and personal assets at risk if your franchise fails.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, if you operate your Checkers franchise through a legal entity like a corporation or LLC, the owners are required to personally guarantee the obligations under the Franchise Agreement. While the FDD mentions this requirement, it does not include copies of the actual guarantee documents.
Item 23 includes a receipt page that the franchisee must sign, acknowledging receipt of the FDD, which summarizes the franchise agreement. The California addendum in Item 23 also mentions that franchisees and all owners must sign a personal guarantee, making them and their spouse individually liable for financial obligations. This guarantee places personal and marital assets at risk if the franchise fails. However, this addendum does not contain the actual guarantee document.
Item 22 lists the contracts that make up the franchise agreement, such as addenda for women or veteran business owners. While these exhibits include signature pages for legal entities, they are addenda to the franchise agreement, not the personal guarantees themselves.
Therefore, the FDD excerpts do not contain the actual guarantee agreements. A prospective franchisee should request a copy of the specific personal guarantee form from Checkers to review its terms and conditions before signing the Franchise Agreement.