Does the Checkersrallys Development Agreement require the franchisee to acknowledge they have read the Franchise Disclosure Document?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
This Franchise Disclosure Document for Checkers Restaurants and Rally's Restaurants summarizes certain provisions of the franchise agreement and other information in plain language. Read this Franchise Disclosure Document and all agreements carefully.
If Checkers Drive-In Restaurants, Inc. ("Checkers") offers you a franchise, Checkers must provide this Franchise Disclosure Document to you 14 calendar days before you sign a binding agreement with, or make a payment to us or an affiliate of ours in connection with the proposed franchise sale, or sooner if required by applicable state law. Applicable state law in (a) Michigan requires us to provide you the Franchise Disclosure Document at least 10 business days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale and (b) New York and Rhode Island require us to provide you the Franchise Disclosure Document the earlier of the first personal meeting or 10 business days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
If Checkers does not deliver this Franchise Disclosure Document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and any applicable state agency.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, Item 23 includes a receipt form that acknowledges the franchisee has received and read the Franchise Disclosure Document. Specifically, the document states that the Franchise Disclosure Document summarizes the franchise agreement and other information in plain language, and it instructs the franchisee to read the Franchise Disclosure Document and all agreements carefully.
Checkersrallys is obligated to provide the Franchise Disclosure Document to a prospective franchisee at least 14 calendar days before they sign a binding agreement or make a payment. However, this timeframe varies in certain states. For example, in Michigan, the document must be provided at least 10 business days in advance, while New York and Rhode Island require it the earlier of the first personal meeting or 10 business days before signing an agreement or making a payment.
The receipt also notes that failure to deliver the Franchise Disclosure Document on time, or if it contains false or misleading statements or material omissions, may constitute a violation of federal and state laws. Such violations should be reported to the Federal Trade Commission and any applicable state agency. This receipt serves as an acknowledgment that Checkersrallys has provided the required disclosures and that the franchisee has been advised to review them thoroughly before making any commitments.