What is the minimum number of business days Checkers must provide the Franchise Disclosure Document in Michigan before signing a binding agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If Checkers Drive-In Restaurants, Inc. ("Checkers") offers you a franchise, Checkers must provide this Franchise Disclosure Document to you 14 calendar days before you sign a binding agreement with, or make a payment to us or an affiliate of ours in connection with the proposed franchise sale, or sooner if required by applicable state law. Applicable state law in (a) Michigan requires us to provide you the Franchise Disclosure Document at least 10 business days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale and (b) New York and Rhode Island require us to provide you the Franchise Disclosure Document the earlier of the first personal meeting or 10 business days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if you are considering a Checkers franchise in Michigan, Checkers must provide you with the Franchise Disclosure Document (FDD) at least 10 business days before you sign a binding agreement or make any payment related to the franchise. This requirement is specific to Michigan law. This timeframe allows you to thoroughly review the document and seek professional advice before making a commitment.
This disclosure period is designed to protect potential franchisees by giving them adequate time to assess the risks and benefits of investing in a Checkers franchise. It ensures that you are not pressured into making a quick decision without fully understanding the terms and conditions of the franchise agreement. The FDD contains important information about Checkers, including its financial performance, obligations, and any potential legal issues.
It's important to note that while the federal requirement is 14 calendar days, Michigan law mandates a shorter period of 10 business days. This means Checkers must adhere to the stricter state law in Michigan. If Checkers fails to provide the FDD within this timeframe, it could be a violation of both federal and state law, which should be reported to the appropriate authorities, such as the Federal Trade Commission and any applicable state agency.