Does the Checkersrallys franchise agreement require that the franchisee's execution and performance of the agreement not violate any other agreement to which they or their owners may be bound?
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 has made any untrue statement of any material fact or has omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Owners has any direct or indirect legal or beneficial interest in any business that may be deemed a
Competitive Business, except as otherwise completely 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 of 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 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the franchise agreement includes a representation by the franchisee and their owners that their execution and performance of the Checkersrallys agreement will not violate any other agreements they are bound by. This means that before signing the franchise agreement, prospective Checkersrallys franchisees and their owners must ensure that they are not party to any existing contracts or obligations that would conflict with their duties and responsibilities as a Checkersrallys franchisee.
This requirement protects Checkersrallys by ensuring that franchisees can fully commit to and perform their obligations under the franchise agreement without legal conflicts or divided loyalties. It also prompts franchisees to conduct due diligence on their own existing legal commitments.
For a prospective franchisee, this means carefully reviewing all existing contracts, such as employment agreements, partnership agreements, or other business ventures, to identify any potential conflicts. If conflicts exist, the franchisee may need to seek legal advice to resolve them before proceeding with the Checkersrallys franchise. Failure to do so could result in a breach of the franchise agreement and potential legal repercussions.