Does the Checkersrallys Development Agreement state that the franchisor approved the franchise application in reliance on the statements made by the franchisee?
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 the 2025 Checkersrallys Franchise Disclosure Document, the franchise agreement stipulates that Checkersrallys approves the franchise application based on the statements made by the franchisee and their owners. Specifically, the franchisee and their owners represent and warrant that they have not made any untrue statements or omitted any material facts in obtaining the franchise rights. They also confirm that they do not have any undisclosed interests in competitive businesses and that entering into the agreement does not violate any other agreements they may be bound by.
This means that Checkersrallys relies on the accuracy and completeness of the information provided by the franchisee during the application process. Any misrepresentation or omission of material facts could potentially lead to legal issues or termination of the franchise agreement.
Prospective Checkersrallys franchisees should ensure that all information provided in their franchise application is accurate, truthful, and complete. This includes disclosing any potential conflicts of interest, such as ownership in competing businesses, and ensuring that they are not violating any existing agreements by entering into the Checkersrallys franchise agreement. This requirement is fairly standard in the franchise industry, as franchisors need to rely on the information provided by franchisees to make informed decisions about awarding franchises.