Is a Checkersrallys franchisee allowed to make any express or implied agreements, warranties, guarantees or representations in the name of Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not make any express or implied agreements, warranties, guarantees or representations or incur any debt in our name or on our behalf or represent that the relationship of the parties hereto is anything other than that of independent contractors. We will not be obligated by or have any liability under any agreements made by you with any third party or for any representations made by you to any
third party. We will not be obligated for any damages to any person or property arising directly or indirectly out of the operation of your business hereunder.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, franchisees are explicitly prohibited from making any agreements, warranties, or representations on behalf of Checkersrallys. This restriction is in place to ensure that Checkersrallys is not held liable for any unauthorized commitments made by its franchisees. The FDD also states that the relationship between Checkersrallys and its franchisees is that of independent contractors.
This means that a Checkersrallys franchisee cannot represent themselves as an agent or employee of Checkersrallys. Any agreements or representations made by the franchisee are solely their responsibility, and Checkersrallys will not be obligated by them. This protects Checkersrallys from potential legal or financial liabilities arising from franchisee actions.
This provision is standard in franchising, as franchisors typically want to maintain control over their brand and avoid being held responsible for the actions of independent franchisees. Prospective Checkersrallys franchisees should understand this limitation and ensure that all their business dealings are conducted in their own name and on their own behalf, without creating any impression that they are acting as Checkersrallys's agent.