For Checkersrallys franchisees, what information must be included in the list of all Owners?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| following | a | Name of General Partner | , | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3. | Owners. Franchisee and each of its Owners represents and warrants that the | |||||||||||
| following is a complete and accurate list of all Owners of Franchisee, including the | ||||||||||||
| full name and mailing address of each Owner, and fully describes the nature and | ||||||||||||
| extent of each Owner's interest in Franchisee. Franchisee, and each Owner as to his | ||||||||||||
| ownership interest, represents and warrants that each Owner is the sole and | ||||||||||||
| exclusive legal and beneficial owner of his ownership interest in Franchisee, free | ||||||||||||
| and clear of all liens, restrictions, agreements and encumbrances of any kind or | ||||||||||||
| nature, other than those required or permitted by this Agreement. | Owner's Name and Address | Description of Interest | ||||||||||
| CHECKERS DRIVE-IN RESTAURANTS, INC., a Delaware corporation | (Name of corporation, limited liability company or partnership) | |||||||||||
| ---------------------------------------------------------------- | ----------------------------------------------------------------------------- | |||||||||||
| By: | By: | |||||||||||
| Print Name: | Print Name: | |||||||||||
| Title: | Title: Owners: (Signature) (Print Name) (Signature) (Print Name) (Signature) (Print Name) (Signature) (Print Name) |
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee must provide a complete and accurate list of all Owners. This list must include the full name and mailing address of each Owner, and it must fully describe the nature and extent of each Owner's interest in the Checkersrallys franchise. Furthermore, the franchisee and each Owner must represent and warrant that each Owner is the sole and exclusive legal and beneficial owner of their ownership interest in the franchise, free and clear of all liens, restrictions, agreements, and encumbrances, except as permitted by the Franchise Agreement.
In simpler terms, if you're a Checkersrallys franchisee operating as a corporation, partnership, or LLC, you need to disclose who owns the business. This disclosure isn't just about names; you also have to provide the mailing address for each owner and a detailed description of their stake in the franchise. This ensures transparency and allows Checkersrallys to know exactly who has a financial interest in each franchise location.
This requirement is fairly standard in franchising, as franchisors typically want to ensure that all owners meet their qualifications and that there are no hidden interests or potential conflicts of interest. By requiring this information, Checkersrallys aims to maintain control over who is involved in their franchise system and to protect the integrity of the brand. Franchisees should be prepared to provide this information upfront and to update it as needed if ownership changes occur.