What section of the Checkers Development Agreement is deleted and replaced by this Rider?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Your Acknowledgments. Sections 1.02 of the Agreement is hereby deleted and replaced with the following:
You accept the terms of this Agreement as being reasonably necessary to maintain the uniformity of our high quality standards at all Restaurants in order to protect and preserve the goodwill of the Marks and the integrity of the System. You recognize that the restaurant industry is highly competitive, with constantly changing market conditions. You recognize that the nature of Restaurants may change over time. All acknowledgments or representations of Area Franchisee requiring you to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
- Your Representations. The following language is added to Section 1.03 of the Agreement:
All acknowledgments or representations of Area Franchisee requiring you to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
- Development Fee. Section 2.01 shall be amended by adding the following:
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the Maryland Rider to the Development Agreement modifies the agreement in specific ways to comply with Maryland franchise law. Specifically, Section 1.02 of the Development Agreement is deleted entirely and replaced with a new section. This change emphasizes that the franchisee acknowledges the terms are necessary to maintain Checkers' quality standards and protect the brand's goodwill. It also recognizes the competitive and changing nature of the restaurant industry. The new section clarifies that acknowledgments or representations from the franchisee do not act as a waiver of liability under Maryland's franchise law.
Additionally, the Maryland Rider adds language to Section 1.03 of the Development Agreement. This addition reinforces that any acknowledgments or representations from the franchisee do not waive liability under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees retain their rights and protections under Maryland law, regardless of any agreements made within the franchise contract.
Furthermore, Section 2.01 of the Development Agreement, concerning the Development Fee, is amended by adding additional stipulations. These modifications likely address specific requirements or clarifications related to the development fee within the context of Maryland franchise regulations. Prospective franchisees in Maryland should carefully review the full Maryland Rider to understand all modifications to the Development Agreement and how these changes affect their rights and obligations under the franchise agreement.