What representation does Checkers require regarding the franchisee's ability to perform the agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.03 Your Representations. You, and your Owners, if applicable, represent and warrant to us, that: (a) neither you nor any of your Owners has made any untrue statement of any material fact or has omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Owners has any direct or indirect legal or beneficial interest in any business that may be deemed a
Competitive Business, except as otherwise completely and accurately disclosed in your franchise application submitted to us; and (c) the execution and performance of this Agreement will not violate any other agreement to which you or of any of your Owners may be bound. You recognize that we have approved your franchise application in reliance on all of the statements you and your Owners have made in connection therewith.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, franchisees and their owners must represent and warrant several key points to Checkers. Specifically, they must confirm that all statements made during the franchise application process are truthful and complete, without any omission of material facts.
Furthermore, franchisees and their owners must disclose any existing direct or indirect legal or beneficial interest in any business that could be considered competitive to Checkers, ensuring transparency and preventing potential conflicts of interest. The execution and performance of the Franchise Agreement must not violate any other agreements to which the franchisee or their owners are bound, ensuring they are free to fulfill their obligations to Checkers.
Checkers emphasizes that it approves franchise applications based on the accuracy and completeness of the statements made by the franchisee and their owners. This highlights the importance of honesty and full disclosure during the application process, as any misrepresentation or omission could have legal ramifications and impact the franchise agreement.