factual

Besides termination, what other remedies are available to Checkersrallys if a franchisee breaches the Addendum?

Checkersrallys Franchise · 2025 FDD

Answer from 2025 FDD Document

4. Additional Condition(s).

  • b. If you breach, fail to satisfy, or are later found to have violated or failed to satisfy, any of the criteria listed in Section 2 above in this Addendum, at any point during the Term, then in addition to any other remedies available under the Franchise Agreement (including termination) or at applicable law, you must pay us (no later than thirty (30) days after our written notice to you) the amount or value of any fee reduction, discount, or other benefit afforded to you hereunder.

Source: Item 22 — CONTRACTS (FDD pages 91–92)

What This Means (2025 FDD)

According to the 2025 Checkersrallys FDD, in addition to termination, Checkersrallys has other remedies available if a franchisee breaches the Addendum. If a franchisee breaches any criteria listed in Section 2 of the Addendum, or fails to satisfy them, or is later found to have violated or failed to satisfy them at any point during the term, Checkersrallys can require the franchisee to pay the amount or value of any fee reduction, discount, or other benefit afforded to them under the Addendum.

This payment must be made no later than thirty (30) days after Checkersrallys provides written notice to the franchisee. This clause ensures that Checkersrallys can recoup any financial benefits the franchisee received if the franchisee fails to meet the obligations outlined in the Addendum.

This provision is in addition to any other remedies available to Checkersrallys under the Franchise Agreement or at applicable law. This means Checkersrallys retains all other legal and contractual rights, providing them with multiple avenues for recourse in case of a breach. Prospective franchisees should carefully review Section 2 of the Addendum to fully understand the criteria that could trigger this repayment obligation.

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.