What must each person who becomes an Owner of a Checkers franchise execute?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.02 Disclosure of Ownership Interests. You and all of your Owners represent, warrant and agree that Exhibit A is current, complete and accurate as of the Effective Date. You agree to promptly notify us of any proposed or intended change to your ownership structure during the Term, to obtain our approval in accordance with the transfer conditions of Section 13.02 below before initiating any such change, and to sign a then-updated and accurate form of Exhibit A (which will replace its predecessor version of Exhibit A) if we approve the change. Each person who is or becomes an Owner must execute an agreement in form and substance as we then prescribe, undertaking to be bound jointly and severally by this Agreement. Each Owner must be an individual acting in his individual capacity, unless we waive this requirement.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, each person who is or becomes an Owner of a Checkers franchise must execute an agreement. This agreement must be in a form and substance prescribed by Checkers at that time, and it requires the owner to be bound jointly and severally by the Franchise Agreement. Unless Checkers waives the requirement, each Owner must be an individual acting in their individual capacity.
This requirement ensures that all individuals with an ownership stake in the Checkers franchise are legally bound to the terms and conditions of the Franchise Agreement. By signing the agreement, each owner becomes jointly and severally liable, meaning they share responsibility for the franchise's obligations and can be held individually responsible for any breaches of the agreement.
This is a standard practice in franchising, as it protects the franchisor by ensuring that all owners are committed to upholding the brand's standards and fulfilling the contractual obligations. Prospective franchisees should carefully review the Franchise Agreement and the owner's agreement to understand the full scope of their responsibilities and liabilities before investing in a Checkers franchise. It is also important to note that Checkers has the right to change the form and substance of the agreement that each owner must sign.