Can the Checkersrallys Development Agreement be modified, and if so, what are the conditions for modification?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY |
|---|---|---|
| o. Franchisor’s option | Not applicable | Not applicable |
| to purchase | ||
| developer’s | ||
| development rights | ||
| p. Death or disability | Section 7.05 | Franchise must be assigned by estate to |
| of developer | approved buyer within nine months. | |
| q. Non-competition covenants during the term of the agreement | Section 6.02 | No involvement in any competing business regardless of its location. |
| r. Non-competition covenants after the agreement is terminated or expires | Section 9.02 | No competing business for 2 years within your Development Area or within 3 miles of any other Checkers Restaurant or Rally's Restaurant. |
| s. Modification of the | Section 10.10 | No modifications except by written |
| agreement | agreement signed by both parties. | |
| t. Integration/merger clause | Section 10.11 | Only terms of Development Agreement are binding (subject to state law); any representations or promises outside the disclosure document and development agreement may not be enforceable. However, nothing in the Development Agreement or any related agreement is intended to disclaim our representations made in this Disclosure Document. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 71–77)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Development Agreement can be modified. However, any modifications to the agreement must be in writing and signed by both Checkersrallys and the franchisee.
This requirement ensures that any changes to the original agreement are formally documented and agreed upon by all parties involved, preventing potential misunderstandings or disputes in the future. It is a standard practice in franchising to require written modifications to protect both the franchisor and the franchisee.
Prospective Checkersrallys franchisees should be aware that any verbal agreements or promises made outside of the written Development Agreement may not be enforceable. The FDD emphasizes that only the terms within the Development Agreement are binding, subject to state law. This is reinforced by the integration/merger clause, which limits enforceability to the written agreement. However, the disclosure document clarifies that this does not disclaim representations made by Checkersrallys in the Disclosure Document itself.
Therefore, it is crucial for franchisees to ensure that all agreed-upon terms and conditions are included in the written Development Agreement or the Disclosure Document to avoid any discrepancies or issues later on. Franchisees should carefully review the Development Agreement and seek legal counsel to fully understand their rights and obligations.