What happens if there is a conflict between the Checkers Franchise Agreement and the Non-Traditional Site Addendum?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
--|---------------------------------------------------------------------------------------------|------|------|----|---------|----| | | | | | Agreement") pursuant to which Franchisee will operate a franchised "Checkers" or "Rally's" | | | | | | | | | | | dated of even date herewith (including all related exhibits and attachments, the "Franchise | | | | | | | | WHEREAS, Franchisor | | | and Franchisee are Parties to that certain Franchise Agreement | | | | | |
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 authorized, or will obtain due authorization, to establish and operate a Restaurant within or from the premises of a Non-Traditional Site; and (b) you will remain a franchisee in good standing, and comply with the Franchise Agreement.
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- Reduced Fee(s). The following fees are modified in the Franchise Agreement to reflect Franchisee's operation of the Restaurant from a Non-Traditional Site:
- a. **Initial
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the Non-Traditional Site Addendum takes precedence over the standard Franchise Agreement in case of a conflict. This means that if there's a disagreement between the terms of the Franchise Agreement and the Addendum, the terms outlined in the Non-Traditional Site Addendum will be the governing terms.
This is particularly relevant for franchisees operating a Checkers restaurant in a non-traditional location, such as a food court, airport, or gas station. The Addendum modifies certain aspects of the standard Franchise Agreement to better suit the unique circumstances of these locations. For instance, the document mentions that the initial franchise fee may be reduced by $15,000 and the royalty fee is set at 2% of net sales for non-traditional sites.
Prospective franchisees should carefully review both the Franchise Agreement and the Non-Traditional Site Addendum to understand their rights and obligations. It's crucial to identify any potential conflicts and understand how they will be resolved in favor of the Addendum. This ensures clarity and avoids misunderstandings regarding the operation of the Checkers franchise at a non-traditional site.