Does Checkers require franchisees to ensure that the execution of the franchise agreement does not violate any other 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 the 2025 Checkers Franchise Disclosure Document, Checkers requires franchisees, and their owners if applicable, to represent and warrant that the execution and performance of the Franchise Agreement will not violate any other agreement they may be bound by. This representation is crucial, as Checkers approves franchise applications in reliance on the statements made by the franchisee and their owners.
This requirement ensures that franchisees are not entering into a contractual obligation with Checkers that conflicts with pre-existing commitments. For example, a prospective franchisee should disclose if they have signed a non-compete agreement with another restaurant franchise that would prevent them from operating a Checkers restaurant.
The franchisee's representation protects Checkers by ensuring that the franchisee is fully capable of fulfilling their obligations under the Franchise Agreement without legal conflicts. If a franchisee breaches this representation, Checkers may have grounds to terminate the agreement or pursue legal remedies.