What happens if a Checkers franchisee makes a material misstatement in their application for development rights?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.03 Your Representations. You and your Owners, if applicable, represent and warrant to us that: (a) neither you nor any of your Owners have made any untrue statement of any material fact or have omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Owners have any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business, except as otherwise fully and accurately disclosed in your franchise application
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, if a franchisee or their owners make an untrue statement of any material fact or omit a material fact when obtaining franchise rights, it is a breach of their representations to Checkers.
This means that during the application process for a Checkers franchise, all information provided by the prospective franchisee and their owners must be truthful and complete. Omitting or misrepresenting important details could have legal consequences.
Checkers emphasizes that franchisees have read the agreement and the Franchise Disclosure Document, understand the terms, and accept them as reasonably necessary. Franchisees also acknowledge they have conducted an independent investigation and recognize the risks involved, with success largely dependent on their own abilities and resources. Therefore, accuracy and honesty in the application are critical to avoid future issues with Checkers.