In the Checkersrallys Addendum, what happens if there is a conflict between the provisions of the Addendum and the Franchise Agreement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, the Parties now desire to modify the Franchise Agreement according to the terms and conditions set forth in this Addendum.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
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- Relationship to Franchise Agreement; Recitals. This Addendum shall be annexed to and form a part of the Franchise Agreement. All capitalized terms not otherwise defined in this Addendum shall have the meanings set forth in the Franchise Agreement. Except as modified by this Addendum, the Franchise Agreement remains in full force and effect. Any conflict between the provisions hereof and the Franchise Agreement shall be construed in favor of this Addendum. All references in this Addendum to "Sections," "Subsections," and/or "Exhibits" shall mean the applicable Section(s), Subsection(s), and/or Exhibit(s) of the Franchise Agreement, unless specified otherwise below. The Recitals above are incorporated into this Addendum by reference.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, specifically the Addendum, any conflict between the Addendum and the Franchise Agreement will be resolved in favor of the Addendum. The Addendum is designed to modify the existing Franchise Agreement, and it takes precedence over the original agreement in case of discrepancies.
This means that if a Checkersrallys franchisee signs an addendum that changes a specific term of the Franchise Agreement, the new term in the Addendum will be the one that is enforced. For example, if the Addendum modifies the royalty fee, that modification supersedes the original royalty fee outlined in the Franchise Agreement.
This clause ensures that the most recent agreements between Checkersrallys and the franchisee are upheld, providing clarity and legal certainty. Franchisees should carefully review any addenda to understand how they alter the original Franchise Agreement and be aware that the addendum's terms will govern in case of a conflict.