For Checkersrallys, what agreement must each person who is or becomes an Owner execute?

According to Checkersrallys's 2025 Franchise Disclosure Document, each individual who is or becomes an Owner must sign an agreement. This agreement, which must be in a form and substance prescribed by Checkersrallys, requires the Owner to be bound jointly and severally by the Franchise Agreement. Unless Checkersrallys waives the requirement, each Owner must act in their individual capacity.

This requirement ensures that all Owners are legally responsible for the franchise's obligations and compliance with the Franchise Agreement. The "jointly and severally" clause means that each Owner can be held individually liable for the entire debt or obligation of the franchise, regardless of their ownership percentage. This protects Checkersrallys by providing multiple avenues for recourse if the franchisee fails to meet its obligations.

For a prospective Checkersrallys franchisee, this means that anyone with an ownership stake in the franchise entity will be required to sign a legally binding document accepting personal responsibility for the franchise's performance. Franchisees should carefully review the Franchise Agreement and understand the implications of this requirement, as it could expose their personal assets to liability. Franchisees should consult with a legal professional to fully understand the agreement they and their owners are undertaking.