What is the significance of the 'Recitals' section in the Checkers Existing Franchisee Incentive Addendum?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
-------------|------|----|-----|---------|----------|-------------------------------------------------------------------------------------| | | | | | | | | | | RESTAURANTS, INC., a Delaware corporation ("Franchisor," "we," "our," or "us"), and | | | | | | | | | | | ("you" or "your" or "Franchisee"). We and you may each | | | | | be referred to as a "Party," or collectively, the "Parties." | | | | | | |
R E C I T A L S
WHEREAS, Franchisor has implemented an incentive program available to qualified existing franchisees of "Checkers" or "Rally's" restaurants under which the Initial Franchise F
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the 'Recitals' section in the Existing Franchisee Incentive Addendum is a crucial component that provides context and is incorporated directly into the agreement. The recitals outline the reasons why the addendum is being created, specifically highlighting the franchisee's desire to participate in the incentive program and the mutual desire of both parties to modify the existing franchise agreement.
In practical terms, the recitals section confirms that Checkers has implemented an incentive program for existing franchisees of Checkers or Rally's restaurants. This incentive reduces the initial franchise fee by $10,000 if the franchisee opens their new restaurant within one year of signing the Franchise Agreement. The recitals also establish that the franchisee is already part of the Checkers/Rally's system, operating at least two restaurants under separate franchise agreements.
By incorporating the recitals into the addendum, Checkers ensures that the agreement reflects the understanding and intent of both parties. This section clarifies the purpose of the addendum, which is to provide an incentive for existing franchisees to expand their operations. This incentive aims to motivate franchisees to open new locations quickly, benefiting both the franchisee through reduced fees and Checkers through increased brand presence and revenue.