What organizational documents relating to ownership, organization, capitalization, management, and control must a Checkers franchisee provide to the franchisor?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
4.01 Organizational Documents. If you are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, you and each of your Owners represent, warrant and agree that: (a) you are duly organized and validly existing under the laws of the state of your organization, and, if a foreign business corporation, partnership, limited liability company or other legal entity, you are duly qualified to transact business in the state in which the Development Area is located; (b) you have the authority to execute and deliver this Agreement and to perform your obligations hereunder; (c) true and complete copies of the articles of incorporation, partnership agreement, bylaws, subscription agreements, buy-sell agreements, voting trust agreements and all other documents relating to your ownership, organization, capitalization, management and control have been delivered to us and all amendments thereto shall be promptly delivered to us; (d) your activities are restricted to those necessary solely for the development, ownership and operation of Restaurants in accordance with this Agreement and in accordance with any other agreements entered into with us or any of our Affiliates; (e) the articles of incorporation, partnership agreement or other organizational documents recite that the issuance, transfer or pledge of any
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if a franchisee is a business corporation, partnership, limited liability company, or other legal entity, they must provide true and complete copies of several organizational documents to Checkers. These documents pertain to the franchisee's ownership, organization, capitalization, management, and control.
Specifically, the franchisee must deliver copies of the articles of incorporation, partnership agreement, bylaws, subscription agreements, buy-sell agreements, voting trust agreements, and all other relevant documents. Furthermore, any amendments to these documents must be promptly delivered to Checkers. This requirement ensures that Checkers has a comprehensive understanding of the franchisee's business structure and any changes that may occur over time.
This obligation is in place to allow Checkers to maintain oversight and ensure compliance with the franchise agreement. By requiring these documents, Checkers can verify that the franchisee is duly organized and authorized to fulfill its obligations under the agreement. It also allows Checkers to monitor any changes in ownership or control that could potentially impact the operation of the franchise.
For a prospective Checkers franchisee, this means being prepared to provide all necessary organizational documents upfront and to keep Checkers informed of any changes to these documents throughout the term of the franchise agreement. Failure to do so could potentially result in a breach of the agreement.