What qualifications must a Checkers franchisee meet to sign the Non-Traditional Site Addendum?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
--|---------------------------------------------------------------------------------------------|------|------|----|---------|----| | | | | | Agreement") pursuant to which Franchisee will operate a franchised "Checkers" or "Rally's" | | | | | | | | | | | dated of even date herewith (including all related exhibits and attachments, the "Franchise | | | | | | | | WHEREAS, Franchisor | | | and Franchisee are Parties to that certain Franchise Agreement | | | | | |
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.
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- Qualifications. You represent, and in connection with signing this Addendum have provided us (or agree to provide promptly upon our request) relevant supporting documentation, that: (a) you are authorized, or will obtain due authorization, to establish and operate a Restaurant within or from the premises of a Non-Traditional Site; and (b) you will remain a franchisee in good standing, and comply with the Franchise Agreement.
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- Reduced Fee(s). The following fees are modified in the Franchise Agreement to reflect Franchisee's operation of the Restaurant from a Non-Traditional Site:
- a. **Initial
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, to qualify for the Non-Traditional Site Addendum, a franchisee must meet specific conditions. The franchisee must represent and provide supporting documentation confirming that they are authorized, or will obtain authorization, to establish and operate a Checkers restaurant within the premises of a Non-Traditional Site.
Additionally, the franchisee must remain in good standing and comply with the existing Franchise Agreement. These qualifications ensure that the franchisee is capable of managing a Checkers restaurant in a non-traditional setting, such as military bases, airports, or entertainment venues, and that they adhere to the brand's standards and operational requirements.
Meeting these qualifications allows the franchisee to benefit from modifications to the standard franchise agreement, such as a reduction of $15,000 in the initial franchise fee. The royalty fee is also revised to 2% of Net Sales, reflecting the potentially different operational dynamics of a non-traditional site. However, failure to meet these qualifications at any point during the term can result in the franchisee having to pay back the value of any fee reductions or discounts received.