Does the Checkersrallys Development Agreement state that the franchisee understands the terms of the agreement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 and preserve 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 Restaurants 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.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Development Agreement requires franchisees to acknowledge that they have read the agreement and the Franchise Disclosure Document, and that they understand and accept the terms as reasonably necessary. This acknowledgment confirms the franchisee's understanding of the agreement's terms and their acceptance of these terms to maintain uniformity and protect the brand's goodwill.
This acknowledgment also includes the franchisee's recognition that the restaurant industry is competitive and subject to changing market conditions. It emphasizes that investing in a Checkersrallys restaurant involves business risks and that the franchisee's success depends on their abilities, efforts, and financial resources. Furthermore, franchisees must acknowledge that they have not relied on any guarantees or assurances regarding revenues, profits, or the success of the business venture.
This clause protects Checkersrallys by ensuring franchisees understand the risks and responsibilities involved. It also confirms that franchisees have conducted their own independent investigation and are not relying solely on the franchisor's promises. This is a standard practice in franchising, as it helps to avoid future disputes based on misunderstandings or unrealistic expectations.