Does the Checkersrallys Development Agreement state that its execution should not violate any other agreement the franchisee is bound by?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.03 Your Representations. You and your Owners, if applicable, represent and warrant to us that: (a) neither you nor any of your Owners have made any untrue statement of any material fact or have omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Owners have any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business, except as otherwise fully and accurately disclosed in your franchise application submitted to us; and (c) the execution and performance of this Agreement will not violate any other agreement to which you or any of your Owners may be bound. You recognize that we have approved your franchise application in reliance on all of the statements you and your Owners have made in connection therewith.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Development Agreement includes a representation by the franchisee that the execution and performance of the agreement will not violate any other agreement they are bound by. Specifically, prospective Checkersrallys franchisees and their owners must represent and warrant that the execution and performance of the Franchise Agreement will not violate any other agreement to which they may be bound.
This clause is a standard provision in franchise agreements. It ensures that franchisees are not entering into a franchise agreement that would conflict with any existing legal obligations. This protects Checkersrallys from potential legal issues that could arise if a franchisee is unable to fulfill their obligations due to conflicting agreements.
Prospective franchisees should carefully review all existing agreements to ensure they can meet the obligations outlined in the Checkersrallys Franchise Agreement and Development Agreement. Failure to do so could result in a breach of either the existing agreement or the new franchise agreement, leading to potential legal and financial repercussions.