If Checkersrallys modifies the Protected Area, what document is amended to reflect the modification?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
However, we may during the Term, at our sole option and upon providing notice to you, reduce or otherwise modify the size and/or boundaries of the Protected Area to encompass a geographic area immediately surrounding the Premises consisting of a population of 20,000 residents. If at any time during the Term the population in the Protected Area becomes less than 20,000 residents, we have no obligation to expand or modify the size and/or boundaries of the Protected Area to include a greater population. Upon any modification to the size and/or boundaries of the Protected Area pursuant to the Franchise Agreement, we are authorized to amend Exhibit B to the Franchise Agreement to reflect the modification. Upon the amendment of Exhibit B of the Franchise Agreement by us, the particular geographic area identified in Exhibit B will be deemed the Protected Area under the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 57–60)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if Checkersrallys modifies the size and/or boundaries of the Protected Area, Exhibit B to the Franchise Agreement is amended to reflect the modification. Checkersrallys has the option to modify the Protected Area during the term of the Franchise Agreement. They must provide notice to the franchisee before making any changes. The modified Protected Area will consist of a geographic area immediately surrounding the restaurant premises with a population of 20,000 residents.
If the population in the Protected Area drops below 20,000 residents during the term, Checkersrallys is not obligated to expand or modify the Protected Area. Once Checkersrallys amends Exhibit B, the geographic area identified in the exhibit will be considered the Protected Area under the Franchise Agreement.
This means that a Checkersrallys franchisee's protected territory is not permanently fixed and can be adjusted by the franchisor based on population changes or other factors. It is important for prospective franchisees to understand the conditions under which their protected area could be modified, as this could impact their potential customer base and revenue.