What happens if a provision in the Checkersrallys Franchise Agreement or Development Agreement is inconsistent with California Business and Professions Code Sections 20000 through 20043?

According to the 2025 Checkersrallys Franchise Disclosure Document, if any provision within the Franchise Agreement or Development Agreement conflicts with California Business and Professions Code Sections 20000 through 20043, the law will take precedence. This means that the stipulations outlined in the California Business and Professions Code will override any contradictory terms specified in the Checkersrallys agreements. These sections of the California code provide specific rights to the franchisee concerning termination or non-renewal of a franchise.

For a prospective Checkersrallys franchisee in California, this is a crucial safeguard. It ensures that certain basic protections afforded by California law cannot be undermined by the franchise agreement. This covers aspects like the conditions under which Checkersrallys can terminate or choose not to renew the franchise agreement.

However, franchisees should not assume this resolves all potential legal issues. The FDD also notes that other provisions, such as those related to termination upon bankruptcy or covenants not to compete extending beyond the franchise term, may not be enforceable under California or federal law. It is important for prospective franchisees to seek legal counsel to fully understand their rights and obligations under both the franchise agreement and applicable California law.