Does the Checkersrallys Development Agreement state that the franchisee accepts the terms as being reasonably necessary?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
We own, operate and franchise "Checkers" and "Rally's" branded restaurants, which feature a limited menu of hamburgers, cheeseburgers, hot dogs and/or such other menu items as we may authorize at any time and from time to time. We have developed and own a comprehensive System (defined below in Section 1.04) for developing and operating Restaurants.
- 1.02 Your Acknowledgments. You have read this Agreement and our Franchise Disclosure Document. You understand the terms of this Agreement and accept them as being reasonably necessary to maintain the uniformity of our high quality standards at all Restaurants in order to protect the goodwill of the Marks and the integrity of the System. You have conducted an independent investigation of the business contemplated by this Agreement and recognize that the restaurant industry is highly competitive, with constantly changing market conditions. You recognize that the nature of Restaurants may change over time, that an investment in a Restaurant involves business risks and that the success of the venture is largely dependent on your own business abilities, efforts and financial resources. You have not received or relied on: (a) any guaranty or assurance, express or implied, as to the revenues, profits or success of the business venture contemplated by this Agreement; or (b) any promises that any parent company or Affiliate will back us up financially or otherwise guarantee our performance.
- 1.03 Your Representations.You, and your Owners, if applicable, represent and warrant to us, that: (a) neither you nor any of your Owners has made any untrue statement of any material fact or has omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Owners has any direct or indirect legal or beneficial interest in any business that may be deemed a
Competitive Business, except as otherwise completely and accurately disclosed in your franchise application submitted to us;
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees acknowledge that they understand and accept the terms of the Franchise Agreement as reasonably necessary. Specifically, this acceptance is tied to maintaining the uniformity of Checkersrallys's high-quality standards across all restaurants. The purpose of this uniformity is to protect the goodwill associated with the brand's marks and the integrity of the Checkersrallys system.
This acknowledgment signifies that franchisees agree that the restrictions and obligations outlined in the agreement are justified for the sake of brand consistency and quality control. It also implies that a franchisee has independently investigated the business opportunity and understands the competitive nature and risks associated with the restaurant industry.
However, in Maryland, all acknowledgments or representations of Franchisee requiring you to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.