What financial information might Checkersrallys require from franchisees and their owners?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
ng sites. Our action indicates only that we believe that the site meets our then acceptable criteria and not that a Restaurant will be profitable or successful at the site. Applying criteria that have appeared effective with other sites and premises might not accurately reflect the potential for all sites and premises, and demographic and/or other factors included in or excluded from our criteria could change, altering the potential of a site and premises. The uncertainty and instability of these criteria
are beyond our control, and we are not responsible if a site and premises we suggest or approve for the location of a Restaurant fails to meet your expectations. Accordingly, you acknowledge and agree that your decision to develop and operate a Restaurant at any site is based solely on your own independent investigation of the suitability of the site for a Restaurant
- (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.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys may require franchisees and their owners to furnish financial statements, both historical and pro forma, along with statements detailing the sources and uses of capital funds. Additionally, Checkersrallys might request budgets and other pertinent information concerning the franchisee, their owners, and the development and operation of any proposed or existing Checkersrallys restaurants owned by the franchisee or their affiliates.
Checkersrallys emphasizes that all such financial data must be verified by the franchisee and their owners to ensure completeness and accuracy. This information is crucial for Checkersrallys to assess whether to grant a franchise for a proposed restaurant. Checkersrallys will rely on this data to determine if the franchisee possesses sufficient financial and management capabilities to successfully develop and operate the restaurant.
Checkersrallys will evaluate these capabilities based on standards used to establish restaurants in comparable market areas. The FDD states that failure to demonstrate adequate financial and management capabilities may result in Checkersrallys refusing to grant a franchise. Furthermore, in California, franchisees and all owners must sign a personal guarantee, potentially making them and their spouse individually liable for financial obligations if married, which could put personal assets at risk if the franchise fails.