What is the significance of the phrase 'good and valuable consideration' in the Checkers Existing Franchisee Incentive Addendum?

According to the 2025 Checkers Franchise Disclosure Document, the phrase 'good and valuable consideration' is a legal term used in the context of the Existing Franchisee Incentive Addendum. It signifies that both Checkers as the franchisor and the franchisee are receiving something of value in exchange for the modifications to the original franchise agreement. This phrase acknowledges that there is a mutual benefit and legal basis for the changes outlined in the addendum.

For a Checkers franchisee, the 'good and valuable consideration' typically involves the franchisee meeting certain qualifications or conditions, such as being a franchisee in good standing, agreeing to open the franchised restaurant within a specified timeframe (e.g., one year), or meeting other criteria set by Checkers. In return, Checkers provides an incentive, such as a reduction in the initial franchise fee. For example, existing franchisees may receive a $10,000 reduction in the initial franchise fee for opening a new restaurant within one year. In some cases, such as for a Veteran or a woman, the initial franchise fee may be reduced to zero dollars.

The inclusion of this phrase is important because it establishes the legal foundation for the agreement and ensures that the modifications to the franchise agreement are enforceable. It confirms that both parties have willingly entered into the addendum and have received something of value in the exchange. This is a standard legal practice in franchising to ensure the validity and enforceability of contract modifications. The 'receipt and sufficiency' acknowledgement further confirms that both parties agree that the consideration is adequate and has been received.