What does the Checkersrallys Development Agreement require a franchisee to do?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
We offer qualified persons the right to develop multiple Restaurants within a specific geographic area. We have included in this Franchise Disclosure Document relevant information about our standard form development agreement (the "Development Agreement"). A copy of the Development Agreement is attached as Exhibit C. The Development Agreement requires you to open an agreed-upon number of Checkers Restaurants or Rally's Restaurants in accordance with a development schedule and to sign our then-current form of franchise agreement (which may from the current form of Franchise Agreement included with this Franchise Disclosure Document) prior to each Franchised Restaurant you open.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–14)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Development Agreement mandates that a franchisee must open a specific number of Checkers or Rally's restaurants within a defined geographic area, following a set development schedule. Additionally, the franchisee is required to sign the then-current form of the franchise agreement before opening each franchised restaurant. This franchise agreement may differ from the one included in the current Franchise Disclosure Document.
In essence, the Development Agreement is designed for franchisees who commit to developing multiple Checkersrallys locations. This agreement outlines the obligations and timelines for opening these restaurants. The requirement to sign the 'then-current' franchise agreement for each location is important. It means that the terms and conditions under which each restaurant operates could vary over time, as Checkersrallys updates its standard franchise agreement.
Prospective franchisees should carefully review the Development Agreement (Exhibit C) and understand the development schedule, geographic area, and the potential changes in the franchise agreement over time. It is crucial to assess whether they can meet the obligations for opening multiple units within the specified timeframe and under potentially evolving terms. Understanding these requirements is vital for making an informed decision about entering into a Development Agreement with Checkersrallys.