What is the 'Franchised Restaurant' referring to in the Checkers Existing Franchisee Incentive Addendum?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee desires to qualify for, and to receive the benefits of, the Incentive in connection with its operation of the Franchised Restaurant under the Franchise Agreement; 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 to our satisfaction, 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 develop the Franchised Restaurant in accordance with our current prescribed plans, specifications and design model for Restaurants (including,
without limitation, any modifications or adjustments we authorize and timely introduce for similarly-situated Restaurants, or otherwise incorporate into the System for all franchisees, before you open the Franchised Restaurant).
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the "Franchised Restaurant" in the context of the Existing Franchisee Incentive Addendum refers to the new Checkers or Rally's restaurant that the franchisee is planning to open under the terms of the franchise agreement. This is clarified within the recitals and stipulations of the addendum, which outlines the conditions and benefits associated with the incentive program.
The addendum serves to modify the original franchise agreement, particularly concerning fees and development timelines. For instance, to qualify for the incentive, the franchisee must agree to open the Franchised Restaurant within one year of signing the Franchise Agreement. This condition is directly tied to receiving a reduction in the initial franchise fee.
Furthermore, the franchisee must develop the Franchised Restaurant according to Checkers's prescribed plans, specifications, and design model. This ensures consistency across all Checkers locations and adherence to the brand's standards. The addendum emphasizes that it is annexed to and forms a part of the Franchise Agreement, with any conflicts between the two favoring the addendum.
In essence, the "Franchised Restaurant" represents the specific Checkers or Rally's location that the existing franchisee is committed to developing and operating, subject to the terms and conditions outlined in both the franchise agreement and the incentive addendum. The incentive is designed to encourage growth and expansion within the Checkers franchise system by rewarding existing franchisees who open new restaurants promptly and in compliance with brand standards.