Besides termination, what other remedies are available to Checkersrallys if a franchisee breaches the criteria in Section 2 of the Addendum?

According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee breaches any of the criteria in Section 2 of the addendum, Checkersrallys has additional remedies beyond termination. Specifically, Checkersrallys can require the franchisee to pay the amount or value of any fee reduction, discount, or other benefit that was initially afforded to them. This payment must be made within thirty days of receiving written notice from Checkersrallys. This clause applies if the franchisee breaches the criteria at any point during the term of the franchise agreement.

This provision ensures that Checkersrallys can recoup any financial benefits the franchisee received if the franchisee fails to meet the obligations outlined in Section 2 of the addendum. It serves as a financial disincentive for franchisees to violate these criteria and protects Checkersrallys's interests by allowing them to recover the value of the initial incentives provided. The written notice requirement provides a clear record of the breach and the demand for payment, ensuring transparency and accountability.

For a prospective Checkersrallys franchisee, this means that any initial discounts or fee reductions are contingent upon fulfilling the criteria in Section 2 of the addendum. Failure to meet these criteria can result in the franchisee being required to repay the value of those benefits, in addition to any other remedies Checkersrallys might pursue under the franchise agreement or applicable law. Therefore, it is crucial for franchisees to fully understand and comply with the requirements outlined in Section 2 to avoid potential financial repercussions.