In the context of the Franchise Addendum for Checkersrallys, who is the intended beneficiary of the agreement between the Landlord and Tenant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS FRANCHISE ADDENDUM TO | LEASE AGREEMENT (this |
|---|---|
| "Addendum") is entered into this day of, 20, by and between | |
| , | ("Landlord") |
| a(n) | and |
| , a(n) ("Tenant") for the benefit | |
| of CHECKERS DRIVE-IN RESTAURANTS, INC., a Delaware corporation | |
| ("Franchisor"). | |
| WHEREAS, Tenant and Franchisor have executed a Franchise Agreement (the | |
| "Franchise Agreement"), pursuant to which Franchisor has granted Tenant the | |
| right to establish and operate a [Checkers] Franchised Restaurant at the following | |
| location: (the "Premises"); | |
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- Landlord and Tenant expressly agree that Franchisor is an intended third party beneficiary of the terms of this Addendum. Landlord and Tenant further agree that Franchisor has no liability or obligation under the Lease unless and until Franchisor exercises it right to assume the Lease under this Addendum.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Franchise Addendum to the Lease Agreement between the Landlord and Tenant is specifically for the benefit of Checkers Drive-In Restaurants, Inc., the franchisor. This means that while the lease is primarily between the landlord and the franchisee (tenant), Checkersrallys has certain rights and protections outlined in the addendum.
Checkersrallys is considered a third-party beneficiary, granting them certain privileges without being directly party to the lease. For example, Checkersrallys has the right to receive copies of default notices, proposed lease modifications, and sales information related to the premises. Furthermore, Checkersrallys has the option to cure any default by the tenant, and if they do so, they can take over the tenant's interests in the lease for the remaining term.
This arrangement protects Checkersrallys's interests by ensuring the restaurant can continue operating even if the franchisee faces difficulties. It also allows Checkersrallys to maintain control over the location and protect its brand standards. The Landlord and Tenant expressly agree that Checkersrallys is an intended third party beneficiary of the terms of this Addendum. Landlord and Tenant further agree that Checkersrallys has no liability or obligation under the Lease unless and until Checkersrallys exercises it right to assume the Lease under this Addendum.