For Checkers, what sections of the Franchise Agreement are the undersigned owners personally liable for the breach of?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| In consideration of, and as an inducement to, the execution of the Franch | ise |
|---|---|
| Agreement dated as of, (the "Agreement") by a | nd |
| between CHECKERS DRIVE-IN RESTAURANTS, INC. ("Franchisor"), a | nd |
| ("Franchisee"), each of the undersigned owners of | an |
| nterest in Franchisee hereby personally and unconditionally: (1) guarantees | to |
| Franchisor and its successors and assigns, for the term of the Agreement a | nd |
| hereafter as provided in the Agreement, that Franchisee shall punctually pay a | nd |
| perform each and every undertaking, agreement and covenant set forth in t | he |
| Agreement and that each and every representation of Franchisee made | in |
| connection with the Agreement are true, correct and complete in all respects at a | nd |
| as of the time given; and (2) agrees personally to be bound by, and personally lial | ble |
| or the breach of, each and every provision in the Agreement, including without | out |
| imitation, Sections 5, 7, 8, 13, 16 and 18 (for the avoidance of doubt, includi | ing |
| Section 18.05) thereof. |
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the undersigned owners of an interest in the franchisee are personally liable for the breach of specific sections within the Franchise Agreement. As an inducement to the execution of the Franchise Agreement, these owners guarantee the franchisee's performance and representations.
Specifically, the owners agree to be personally bound by and liable for breaches of Sections 5, 7, 8, 13, 16, and 18 (including Section 18.05) of the Franchise Agreement. These sections likely cover critical aspects of the franchise operation, such as obligations related to operating standards, intellectual property, and financial responsibilities.
This personal liability extends for the term of the agreement and beyond, as specified in the agreement. This means that the personal assets of the owners could be at risk if the Checkers franchise fails to meet its obligations under these sections. Prospective franchisees should carefully review these sections of the Franchise Agreement with legal counsel to fully understand the scope of their personal liability.