What is the 'Franchise Agreement' referring to in the Checkers Existing Franchisee Incentive Addendum?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
R E C I T A L S
WHEREAS, Franchisor has implemented an incentive program available to qualified existing franchisees of "Checkers" or "Rally's" restaurants under which the Initial Franchise Fee due under Franchisor's current form of franchise agreement is reduced by $10,000 if the franchisee opens its Restaurant within one (1) year of signing the Franchise Agreement (the "Existing Franchisee Incentive" or "Incentive");
WHEREAS, Franchisee is an existing franchisee under separate franchise agreements with Franchisor for the operation of at least two (2) "Checkers" or "Rally's" restaurants;
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
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the 'Franchise Agreement' referenced in the Existing Franchisee Incentive Addendum is the agreement between Checkers and the franchisee that grants the franchisee the right to operate a Checkers restaurant.
The Existing Franchisee Incentive Addendum modifies the original Franchise Agreement, offering incentives to existing franchisees who open new restaurants. These incentives include a reduction of $10,000 on the initial franchise fee if the franchisee opens their new restaurant within one year of signing the Franchise Agreement. The addendum is designed to encourage growth among current franchisees by reducing the financial burden of opening additional locations.
The addendum explicitly states that it is annexed to and forms a part of the Franchise Agreement, with all terms not defined in the addendum carrying the meanings defined in the Franchise Agreement. This ensures that the addendum and the original agreement are read as a single, cohesive document. In case of conflict, the addendum takes precedence, indicating that the incentive terms will override any conflicting terms in the original Franchise Agreement. The Existing Franchisee Incentive Addendum also stipulates that to qualify for the incentive, the franchisee must be in good standing with Checkers and fully compliant with all existing agreements.