What happens if there is a conflict between the provisions of the Checkersrallys Non-Traditional Site Addendum and the Franchise Agreement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, the Parties now desire to modify the Franchise Agreement according to the terms and conditions set forth in this Addendum.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
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- Relationship to Franchise Agreement; Recitals. This Addendum shall be annexed to and form a part of the Franchise Agreement. All capitalized terms not otherwise defined in this Addendum shall have the meanings set forth in the Franchise Agreement. Except as modified by this Addendum, the Franchise Agreement remains in full force and effect. Any conflict between the provisions hereof and the Franchise Agreement shall be construed in favor of this Addendum. All references in this Addendum to "Sections," "Subsections," and/or "Exhibits" shall mean the applicable Section(s), Subsection(s), and/or Exhibit(s) of the Franchise Agreement, unless specified otherwise below. The Recitals above are incorporated into this Addendum by reference.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Non-Traditional Site Addendum takes precedence over the Franchise Agreement in case of conflicting terms. Specifically, the addendum modifies the original agreement to accommodate the unique aspects of operating a Checkersrallys restaurant within a non-traditional location.
This means that if a clause in the standard Franchise Agreement contradicts a clause in the Non-Traditional Site Addendum, the terms outlined in the addendum will govern the franchisee's operations. This is particularly relevant for aspects such as fees and operational requirements, which may differ significantly in non-traditional venues like airports or food courts.
For a prospective Checkersrallys franchisee, this clarification is crucial because it provides assurance that the specific conditions of their non-traditional site are legally prioritized. It is important to carefully review both the Franchise Agreement and the Non-Traditional Site Addendum to fully understand all modifications and how they affect the franchisee's rights and obligations. This also underscores the importance of understanding the entire agreement and seeking legal counsel to clarify any ambiguities before signing.