What topics are covered in Section 1 of the Checkers Franchise Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
1. INTRODUCTION.
- 1.01 Restaurants. We own, operate and franchise "Checkers" and "Rally's"-branded restaurants, which feature a limited menu of hamburgers, cheeseburgers, hot dogs and/or such other menu items as we may authorize at any time and from time to time. We have developed and own a comprehensive System (defined below in Section 1.04) for developing and operating Restaurants.
- 1.02 Your Acknowledgments. You have read this Agreement and our Franchise Disclosure Document. You understand the terms of this Agreement and accept them as being reasonably necessary to maintain the uniformity of our high quality standards at all Restaurants in order to protect the goodwill of the Marks and the integrity of the System. You have conducted an independent investigation of the business contemplated by this Agreement and recognize that the restaurant industry is highly competitive, with constantly changing market conditions. You recognize that the nature of Restaurants may change over time, that an investment in a Restaurant involves business risks and that the success of the venture is largely dependent on your own business abilities, efforts and financial resources. You have not received or relied on: (a) any guaranty or assurance, express or implied, as to the revenues, profits or success of the business venture contemplated by this Agreement; or (b) any promises that any parent company or Affiliate will back us up financially or otherwise guarantee our performance.
- 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
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, Section 1 of the Franchise Agreement covers several key introductory aspects of the franchise relationship. These include a general overview of Checkers and Rally's restaurants, which the company owns, operates, and franchises. The restaurants feature a limited menu consisting of hamburgers, cheeseburgers, hot dogs, and other items that Checkers may authorize.
The agreement also includes acknowledgements from the franchisee, confirming they have read the agreement and the Franchise Disclosure Document, understand the terms, and accept them as reasonably necessary. The franchisee also acknowledges conducting an independent investigation of the business, recognizing the competitive nature of the restaurant industry and the business risks involved. They also acknowledge that their success depends on their own abilities and resources and that they have not relied on any guarantees of revenue or profits.
Finally, Section 1 includes representations from the franchisee and their owners, if applicable. These representations warrant that they have not made any untrue statements or omitted any material facts in obtaining the franchise rights. They also confirm that they do not have any undisclosed interest in a competitive business and that their execution of the agreement will not violate any other agreements they are bound by. Checkers states that they have approved the franchise application based on the statements made by the franchisee and their owners.