According to the Checkersrallys Development Agreement, what is the 'Effective Date'?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Development Agreement ("Agreement") is made and entered into by and between | |
|---|---|
| CHECKERS DRIVE-IN RESTAURANTS, INC. ("Franchisor", "we" or "us"), a Delaware | |
| corporation, with its principal place of business located at 4300 West Cypress Street, Suite 600, | |
| Tampa, Florida 33607 and | ("Area |
| Franchisee" or "you"), a(n) | whose principal |
| address is | , as of |
| the date signed by us and set forth opposite our signature on this Agreement (the "Effective | |
| Date"). |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Effective Date in the Development Agreement is defined as the date signed by the franchisor, Checkers Drive-In Restaurants, Inc., and is set forth opposite their signature on the agreement. This date marks the commencement of the agreement.
For a prospective Checkersrallys franchisee, the Effective Date is a critical reference point. It determines when the obligations and rights outlined in the Development Agreement officially begin. This includes the start of the term, the deadlines for opening restaurants as per the Development Schedule, and the enforcement of post-termination covenants.
Furthermore, certain actions must occur within a specified timeframe following the Effective Date. For instance, the franchisee must procure non-disclosure and non-competition agreements from their Operating Partner and certain Owners within ten days of the Effective Date. Understanding and tracking this date is essential for compliance with the Development Agreement and avoiding potential breaches.