Does the Checkersrallys franchise agreement require a franchisee to waive reliance on any representation made in the Franchise Disclosure Document?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
d, postage prepaid and addressed to the party to be notified at its most current principal business address of which the notifying party has been notified in writing. All payments and reports required by this Agreement shall be sent to us at the address identified in this Agreement unless and until a different address has been designated by written notice. No restrictive endorsement on any check or in any letter or other communication accompanying any payment shall bind us, and our acceptance of any such payment shall not constitute an accord and satisfaction.
18.14 Franchisee's Release. To the full extent permitted by applicable law, Franchisee, for itself and on behalf of its Affiliates, and their respective shareholders, directors, officers, limited liability company members, managers and employees, and their respective successors and assigns, and on behalf of the Franchisee's Owners, hereby (i) releases and forever discharges Franchisor and its Affiliates, and their respective directors, officers, employees, agents, representatives and attorneys, and their respective successors and assigns, from any and all claims, demands and causes of action, whether known or unknown, of any kind or nature, absolute or contingent, if any at law or in equity, arising prior to or on the date you sign this Agreement, and (ii) agrees that none of them will institute any litigation or other legal action or proceeding, at law or in equity, against Franchisor or its affiliates and their directors, officers, employees, agents, representatives and attorneys, and their respective successors and assigns, directly or indirectly, relating to any claim or demand released under this Section 18.14. Franchisee shall take whatever actions are necessary or appropriate to carry out the terms of this release and covenant not to sue upon Franchisor's request. Notwithstanding the foregoing, nothing in this Agreement shall disclaim or require you to waive reliance on any representation we made in our Franchise Disclosure Document (including any of that document's exhibits and amendments) delivered to you, your Owners, Affiliates or representatives. This Section 18.14 shall survive the expiration or termination of this Agreement.
18.15 Electronic Signatures.The counterparts of this Agreement and all ancillary documents executed or delivered in connection with this Agreement may
be executed and signed by electronic signature by any of the parties to this Agreement, and delivered by electronic or digital communications to any other party to this Agreement, and the receiving party may rely on the receipt of such document so executed and delivered by electronic or digital communications signed by electronic signature as if the original has been received.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the franchise agreement does not require a franchisee to waive reliance on any representation made in the Franchise Disclosure Document. Specifically, Section 18.14 states that nothing in the agreement should disclaim or require a waiver of reliance on any representation made in the Franchise Disclosure Document. This protection extends to the franchisee, their owners, affiliates, or representatives. Similarly, Section 18.11 reinforces this by stating that nothing in the agreement disclaims or requires a waiver of reliance on any representation made in the most recent Franchise Disclosure Document. This ensures that franchisees can rely on the information provided in the FDD when making their investment decisions.
This provision is crucial for prospective franchisees as it ensures they can hold Checkersrallys accountable for the information presented in the FDD. The FDD contains important details about the franchise system, including fees, costs, obligations, and performance data. By explicitly stating that franchisees do not waive reliance on the FDD, Checkersrallys acknowledges the importance of this document in the franchise relationship.
This is a standard and beneficial clause for franchisees in the franchising industry. It protects the franchisee's right to claim misrepresentation if the information in the FDD turns out to be false or misleading. Franchisees should carefully review the FDD and seek legal counsel to understand their rights and obligations, but this clause provides an additional layer of security and recourse.