After receiving the Checkers Franchise Disclosure Document, what action must a prospective franchisee take with the receipt pages?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The name, principal business address, and telephone number of the franchise seller(s) offering the franchise is (check the appropriate seller):
| Risk-free interest rate | 4.58% | |---|---| | Expected life in years | 4.0 | | Fair value of units | $4.11 | [Our copy - Insert date, sign and return to us]
ITEM 23 RECEIPT
This Franchise Disclosure Document for Checkers Restaurants and Rally's Restaurants summarizes certain provisions of the franchise agreement and other information in plain language. Read this Franchise Disclosure Document and all agreements carefully.
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.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, after receiving the document, a prospective franchisee must insert the date, sign, and return a copy of the Item 23 Receipt to Checkers. This receipt acknowledges that the franchisee has received the Franchise Disclosure Document.
Checkers is legally obligated to provide the Franchise Disclosure Document to a prospective franchisee at least 14 calendar days before they sign a binding agreement or make any payments related to the franchise. However, certain states like Michigan, New York, and Rhode Island have specific requirements regarding the timing of the FDD delivery. Michigan requires delivery at least 10 business days before signing or payment, while New York and Rhode Island require it the earlier of the first personal meeting or 10 business days before signing or payment.
This requirement ensures that franchisees have sufficient time to review the document and seek professional advice before committing to the franchise. If Checkers fails to deliver the Franchise Disclosure Document on time or if the document contains false, misleading, or omits material information, it could be a violation of federal and state laws. In such cases, the franchisee should report it to the Federal Trade Commission and any applicable state agency.