What is the minimum number of business days before signing a binding agreement that Checkers must provide the Checkersrallys Franchise Disclosure Document in Michigan?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
If Checkers Drive-In Restaurants, Inc. ("Checkers") offers you a franchise, Checkers must provide this Franchise Disclosure Document to you 14 calendar days before you sign a binding agreement with, or make a payment to us or an affiliate of ours in connection with the proposed franchise sale, or sooner if required by applicable state law. Applicable state law in (a) Michigan requires us to provide you the Franchise Disclosure Document at least 10 business days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale and (b) New York and Rhode Island require us to provide you the Franchise Disclosure Document the earlier of the first personal meeting or 10 business days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, Checkersrallys must provide the Franchise Disclosure Document to prospective franchisees in Michigan at least 10 business days before they sign a binding agreement. This requirement ensures that potential franchisees have sufficient time to review the document and seek professional advice before making a commitment. This disclosure period is mandated by Michigan state law.
This 10-business-day period is designed to protect franchisees by giving them ample opportunity to understand the terms and conditions of the franchise agreement. It allows them to carefully consider the obligations, risks, and benefits associated with investing in a Checkersrallys franchise. The FDD contains crucial information about the franchise system, including fees, obligations, and financial performance.
It's important to note that the 10-business-day requirement in Michigan is specifically for the period before signing a binding agreement or making a payment related to the franchise. This timing is crucial, as it ensures that franchisees are fully informed before committing any funds or entering into a legally binding contract. Franchisees should use this time wisely to conduct thorough due diligence and consult with legal and financial advisors.