In the Checkersrallys franchise agreement, what terms are used to refer to the franchisee?

According to Checkersrallys's 2025 Franchise Disclosure Document, the terms "Franchisee" and "you" are used to refer to the franchisee in the franchise agreement. The document specifies that these terms can apply to one or more persons, a corporation, a limited liability company, a partnership, and their owners, depending on the context. This means the agreement's obligations and benefits extend to all relevant parties involved in the franchise operation.

This broad definition is important because it clarifies that the franchise agreement isn't just limited to the individual who signs it. If the franchise is owned by a corporation or partnership, the owners of that entity are also bound by the agreement's terms. This ensures that Checkersrallys has recourse against all individuals and entities involved in the franchise if there's a breach of contract.

Furthermore, the FDD states that if two or more persons are franchisees, their obligations and liabilities to Checkersrallys are joint and several. This means that each franchisee is individually responsible for the entire obligation, as well as collectively responsible. Checkersrallys can pursue any one of them for the full amount owed or for complete performance of the agreement, regardless of their individual stake in the franchise. This provides Checkersrallys with a stronger position in enforcing the agreement.

For a prospective Checkersrallys franchisee, it's crucial to understand that the terms of the franchise agreement apply not only to the business entity but also to the individuals behind it. Therefore, all owners and operators should carefully review the agreement and understand their responsibilities and potential liabilities.