What is the relationship between the Checkers Existing Franchisee Incentive Addendum and the Franchise Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
--|----|-----|---------|----------|-------------------------------------------------------------------------------------| | | | | | | | | | | RESTAURANTS, INC., a Delaware corporation ("Franchisor," "we," "our," or "us"), and | | | | | | | | | | | ("you" or "your" or "Franchisee"). We and you may each | | | | | be referred to as a "Party," or collectively, the "Parties." | | | | | | |
R E C I T A L S
WHEREAS, Franchisor has implemented an incentive program available to qualified existing franchisees of "Checkers" or "Rally's" restaurants under which the Initial Franchise Fee due under Franchisor's current form of franchise agreement is reduced by $10,000 if the franchisee opens its Restaurant within one (1) year of signing the Franchise Agreement (the "Existing Franchisee Incentive" or "Incentive");
WHEREAS, Franchisee is an existing franchisee under separate franchise agreements with Franchisor for the operation of at least two (2) "Checkers" or "Rally's" restaurants;
| | WHEREAS, Franchisor | | | | and Franchisee are Parties to that certain Franchise Agreement | | | |---------|---------------------|-------------------------------------------------------------------------------------------|----|-----------|----------------------------------------------------------------|---------|----| | | | dated of even date herewith (the "Franchise Agreement") pursuant to which Franchisee will | | | | | | | operate | another | "Checkers" (the "Franchised Restaurant"); | or | "Rally's" | restaurant | located | at | WHEREAS, Franchisee desires to qualify for and receive, the benefits of the Incentive; and
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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the Existing Franchisee Incentive Addendum modifies the original Franchise Agreement. The addendum is designed for existing Checkers or Rally's franchisees who qualify for an incentive program. This incentive reduces the initial franchise fee by $10,000 if the franchisee opens their new restaurant within one year of signing the Franchise Agreement.
The Existing Franchisee Incentive Addendum is annexed to and becomes part of the Franchise Agreement. Unless specifically defined in the addendum, all capitalized terms retain the meanings defined in the original Franchise Agreement. The Franchise Agreement remains in full effect, except where it is explicitly modified by the addendum. In case of any conflict between the addendum and the Franchise Agreement, the terms of the addendum will take precedence.
To qualify for the incentive, franchisees must be in good standing with Checkers, fully compliant with all existing agreements, and commit to opening the new franchised restaurant within one year of signing the Franchise Agreement. If these conditions are met, Section 6.01 of the Franchise Agreement, which likely details the initial franchise fee, is revised to reflect the $10,000 reduction. This addendum and the Franchise Agreement together constitute the entire understanding between Checkers and the franchisee regarding the incentive.