What happens if there is a conflict between the provisions of the Checkers Franchise Agreement and the 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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if there is a conflict between the provisions of the Franchise Agreement and the Existing Franchisee Incentive Addendum, the Addendum takes precedence. Specifically, the Existing Franchisee Incentive Addendum modifies the original Franchise Agreement.
This means that the terms outlined in the Existing Franchisee Incentive Addendum will override any conflicting terms in the original Franchise Agreement. This is relevant because the Addendum outlines specific incentives for existing franchisees, such as a reduction of $10,000 from the standard initial franchise fee if the franchisee opens their restaurant within one year of signing the Franchise Agreement.
For a prospective Checkers franchisee, this clause provides clarity and assurance that the specific terms of the incentive program, as detailed in the Addendum, will be honored even if they differ from the standard terms of the Franchise Agreement. This ensures that the franchisee receives the intended benefits of the incentive program. The Existing Franchisee Incentive Addendum is annexed to and forms a part of the Franchise Agreement, so all other aspects of the Franchise Agreement remain in full effect.