In the event of any inconsistency, which terms control between the Addendum and the Lease for Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
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- In the event of any inconsistency between the terms of this Addendum and the terms of the Lease, the terms of this Addendum control. All of the terms of this Addendum, whether so expressed or not, are binding upon, inure to the benefit of, and are enforceable by the parties and their respective personal and legal representatives, heirs, successors and permitted assigns. The provisions of this Addendum may be amended, supplemented, waived or changed only by a written document signed by all the parties to this Addendum that makes specific reference to this Addendum and which must be approved in writing by Franchisor. This Addendum may be executed in one or more counterparts, each of which is an original, but all of which together constitute one and the same instrument.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, in the event of any inconsistency between the terms of the Addendum and the terms of the Lease, the terms of the Addendum will control. This is to protect Checkersrallys's interests in the event of franchisee default or termination of the franchise agreement. The addendum ensures that Checkersrallys has specific rights related to the property, regardless of what the original lease states.
This clause is crucial for Checkersrallys because it allows them to maintain control over the location of the franchise, even if the franchisee fails to meet their obligations. For example, if a franchisee's agreement is terminated, Checkersrallys has the right to take over the lease and continue operating a restaurant at that location. This protects Checkersrallys's brand and market presence.
For a prospective Checkersrallys franchisee, this means that the terms of the Addendum are paramount. Franchisees need to understand that the Addendum can override the lease in certain situations, and they should carefully review the Addendum to understand their obligations and Checkersrallys's rights. This also means the franchisee needs to ensure the landlord is willing to sign the addendum, as Checkersrallys requires the landlord to agree to these terms to protect their interests.