factual

Does the Checkersrallys agreement specify that the franchisor will not be obligated for any representations made by the franchisee to any third party?

Checkersrallys Franchise · 2025 FDD

Answer 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)

Based on the 2025 Checkersrallys Franchise Disclosure Document, the agreement states that franchisees must identify themselves as the owner of their development rights in all dealings with third parties. Specifically, franchisees must notify customers, lessors, contractors, suppliers, public officials, personnel, and others of their independent ownership. This includes placing notices of independent ownership on forms, business cards, stationery, advertising, and other materials as required by Checkersrallys.

This requirement ensures that third parties are aware that the franchisee is an independent entity and not an agent of Checkersrallys. This distinction is important because it clarifies that Checkersrallys is not directly responsible for the franchisee's actions or representations. The FDD also states that nothing in the agreement intends to make either party a general or special agent, joint venturer, partner, or employee of the other for any purpose whatsoever.

In practical terms, this means that if a Checkersrallys franchisee makes any representations or promises to a third party, Checkersrallys itself is not obligated or liable for those representations unless explicitly agreed upon. This protects Checkersrallys from potential liabilities arising from the franchisee's independent business operations and ensures that franchisees are accountable for their own dealings.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.