What representation must a Checkers franchisee make, and what documentation must they provide, in connection with signing the Addendum?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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. 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 a current franchisee in good standing
with us, including being in full compliance with all currently effective agreements with us or our affiliates; and (b) you will remain a franchisee in good standing, and comply with all currently effective agreements with us or our affiliates including the Franchise Agreement; and (c) you agree to open the Franchised Restaurant within one (1) year of signing the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, when signing the Addendum, a franchisee must represent certain qualifications and provide supporting documentation. Specifically, the franchisee must represent that they are a current franchisee in good standing with Checkers, fully compliant with all existing agreements with Checkers or its affiliates. They must also represent that they will remain a franchisee in good standing and continue to comply with all effective agreements, including the Franchise Agreement. Additionally, the franchisee must agree to open the franchised restaurant within one year of signing the Franchise Agreement.
To support these representations, the franchisee must provide relevant documentation to Checkers, either at the time of signing the Addendum or promptly upon Checkers's request. This documentation serves as verification of the franchisee's current good standing and their ability to meet the obligations outlined in the Addendum and the Franchise Agreement.
Failure to satisfy these criteria at any point during the term may result in the franchisee having to pay Checkers the amount or value of any fee reduction, discount, or other benefit afforded to them under the addendum. This condition underscores the importance of franchisees maintaining compliance and fulfilling their obligations to receive the incentives associated with the Addendum.