Does the Checkersrallys agreement intend to make either party a general or special agent of the other?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing contained in this Agreement, or arising from the conduct of the parties hereunder, is intended to make either party a general or special agent, joint venturer, partner or employee of the other for any purpose whatsoever. You must conspicuously identify yourself in all dealings with customers, lessors, contractors, suppliers, public officials, personnel and others as the owner of development rights granted hereunder and must place such other notices of independent ownership on such forms, business cards, stationery, advertising and other materials as we require at any time and from time to time.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the franchise agreement explicitly states that neither party is intended to be a general or special agent of the other. This means that franchisees do not have the authority to act on behalf of Checkersrallys, nor does Checkersrallys act on behalf of the franchisee, in a legal sense.
This provision ensures that the franchisee operates as an independent entity, responsible for their own business decisions and liabilities. It also requires the franchisee to clearly identify themselves as the owner of the development rights in all dealings with customers, lessors, contractors, suppliers, public officials, personnel, and others. This reinforces the independent nature of the franchise relationship.
Checkersrallys also requires franchisees to place notices of independent ownership on forms, business cards, stationery, advertising, and other materials as the company requires. This further clarifies that the franchisee is not an agent of Checkersrallys, but rather an independent business owner operating under the Checkersrallys brand and system.