What is the minimum number of calendar days Checkers must provide the Franchise Disclosure Document 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.
If Checkers does not deliver this Franchise Disclosure Document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and any applicable state agency.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers must provide the Franchise Disclosure Document to a prospective franchisee at least 14 calendar days before they sign a binding agreement or make a payment in connection with the proposed franchise sale. This 14-day period allows the franchisee to thoroughly review the document and seek professional advice before committing to the franchise. However, this requirement may be superseded by state laws that mandate a longer disclosure period.
For example, certain states like Michigan, New York, and Rhode Island have specific regulations regarding the timing of the FDD delivery. Michigan requires Checkers to provide the FDD at least 10 business days before signing an agreement or making a payment. New York and Rhode Island require Checkers to provide the FDD the earlier of the first personal meeting or 10 business days before signing a binding agreement or making a payment. These state-specific requirements are designed to provide additional protection to franchisees in those jurisdictions.
If Checkers fails to deliver the Franchise Disclosure Document on time or if the document contains false or misleading statements, or material omissions, it could be a violation of federal and state laws. In such cases, the franchisee can report the violation to the Federal Trade Commission and any applicable state agency. This provision ensures that Checkers adheres to the disclosure requirements and provides accurate information to potential franchisees, promoting transparency and fairness in the franchising process.