factual

What representation does Checkers require regarding untrue statements or omissions from the franchisee?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

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

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 that they have not made any untrue statements of material fact or omitted any material facts when obtaining franchise rights. This representation is crucial because Checkers relies on the accuracy of the information provided in the franchise application when approving it.

This requirement means that prospective Checkers franchisees must be completely honest and transparent in their dealings with the company during the application process. Any misrepresentation or omission, whether intentional or unintentional, could have serious consequences, potentially leading to the termination of the franchise agreement. The representation extends not only to the franchisee but also to their owners, ensuring that all parties involved are held accountable for the accuracy of the information provided.

This type of clause is standard in franchise agreements, as franchisors need to rely on the information provided by franchisees to make informed decisions about awarding franchises. It protects Checkers from potential risks associated with franchisees who may have misrepresented their qualifications or financial capabilities. Prospective franchisees should carefully review all information provided to Checkers and ensure its accuracy to avoid any future disputes or complications.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.