What financial information may Checkersrallys require from a franchisee and their owners?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) We also may require that you and your Owners furnish us financial statements (historical and pro forma), statements of the sources and uses of capital funds, budgets and other information regarding yourself, your Owners and the development and operation of any Restaurant you propose, as well as any then-existing Restaurants you and your Affiliates own. All such information shall be verified by you and your Owners as being complete and accurate in all respects, shall be submitted to us in accordance with our requirements and will be relied on by us in determining whether to grant a franchise for the proposed Restaurant. We may refuse to grant you a franchise for a Restaurant if you fail to demonstrate sufficient financial and management capabilities to properly develop and operate the proposed Restaurant and the then existing Restaurants you and your Affiliates own. We will evaluate such financial and management capabilities in accordance with standards we use to establish Restaurants in other comparable market areas.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys' 2025 Franchise Disclosure Document, Checkersrallys may require franchisees and their owners to furnish financial statements, both historical and pro forma. They may also request statements of the sources and uses of capital funds, budgets, and other information pertaining to the franchisee, their owners, and the development and operation of any restaurant they propose to open, as well as any existing restaurants owned by the franchisee and their affiliates.
This information must be verified as complete and accurate and submitted according to Checkersrallys' requirements. Checkersrallys will rely on this data to determine whether to grant a franchise for the proposed restaurant. The company may deny a franchise if the franchisee fails to demonstrate sufficient financial and management capabilities to properly develop and operate the proposed restaurant and any existing restaurants they or their affiliates own.
Checkersrallys evaluates these capabilities based on standards used to establish restaurants in comparable market areas. Demonstrating adequate financial strength is therefore crucial for a prospective franchisee to gain approval and secure a franchise agreement with Checkersrallys.