What is the Checkers franchisee's obligation regarding the accuracy and completeness of Exhibit A?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| In consideration of, and as an inducement to, the execution of the Franch | ise |
|---|---|
| Agreement dated as of, (the "Agreement") by a | nd |
| between CHECKERS DRIVE-IN RESTAURANTS, INC. ("Franchisor"), a | nd |
| ("Franchisee"), each of the undersigned owners of | an |
| nterest in Franchisee hereby personally and unconditionally: (1) guarantees | to |
| Franchisor and its successors and assigns, for the term of the Agreement a | nd |
| hereafter as provided in the Agreement, that Franchisee shall punctually pay a | nd |
| perform each and every undertaking, agreement and covenant set forth in t | he |
| Agreement and that each and every representation of Franchisee made | in |
| connection with the Agreement are true, correct and complete in all respects at a | nd |
| as of the time given; and (2) agrees personally to be bound by, and personally lial | ble |
| or the breach of, each and every provision in the Agreement, including without | out |
| imitation, Sections 5, 7, 8, 13, 16 and 18 (for the avoidance of doubt, includi | ing |
| Section 18.05) thereof. |
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, Exhibit A to the Franchise Agreement does not contain any obligations of the franchisee regarding its accuracy or completeness. However, the franchisee does guarantee that all representations made in connection with the agreement are true, correct, and complete in all respects at and as of the time given.
The franchisee's owners must personally guarantee that the franchisee will perform every agreement and covenant in the Franchise Agreement and that all representations made by the franchisee related to the agreement are accurate, correct, and complete when given. This guarantee extends for the term of the agreement.
While Exhibit A itself doesn't impose specific obligations on the franchisee regarding accuracy, the broader agreement emphasizes the importance of truthful and complete representations. This means a Checkers franchisee must ensure all information provided during the franchise application and agreement process is accurate and remains so throughout the agreement's term. Failing to meet this standard could result in a breach of contract with potential legal and financial repercussions for the franchisee and their owners.