When applying to be a Checkersrallys franchisee, what information must be provided regarding the Operating Partner?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | Operating Partner. The name and home address of the Operating Partner are as follows: | ||
|---|---|---|---|
- 8.03 Operating Partner.If you are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, you must designate in Exhibit A as the "Operating Partner" an individual we approve who must: (a) own and control, or have the right to own and control (subject to conditions reasonably acceptable to us) not less than ten percent (10%) of your equity and voting rights; (b) have the authority to make, and bind you and all your Owners to, all operational decisions regarding the Franchised Restaurant; and (c) complete our training program to our satisfaction before engaging in his or her operational duties. You may not change the Operating Partner without our prior written consent.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if the franchisee is a business entity, they must designate an Operating Partner. This individual needs to be approved by Checkersrallys and identified in Exhibit A of the franchise agreement.
The Operating Partner must own and control, or have the right to own and control (subject to conditions reasonably acceptable to Checkersrallys), at least 10% of the franchisee's equity and voting rights. They also need to have the authority to make operational decisions for the restaurant and bind the franchisee to those decisions. Furthermore, the Operating Partner is required to complete Checkersrallys's training program to their satisfaction before starting their operational duties.
Exhibit A requires the franchisee to provide the name and home address of the Operating Partner. The franchisee must promptly inform Checkersrallys of any planned changes to the ownership structure during the term of the agreement and obtain their approval before making such changes. If approved, an updated Exhibit A must be signed to reflect the changes.