What is the minimum number of calendar days before signing a binding agreement that Checkers must provide the Checkersrallys Franchise Disclosure Document?
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, Checkers must provide the Franchise Disclosure Document to a prospective franchisee at least 14 calendar days before they sign a binding agreement or make a payment in connection with the proposed franchise sale. However, this is subject to applicable state laws that may require a longer or shorter period. For example, Michigan requires the FDD be provided at least 10 business days before signing an agreement or making a payment. New York and Rhode Island require the FDD be provided the earlier of the first personal meeting or 10 business days before signing an agreement or making a payment.
This 14-day review period is mandated by federal law, allowing potential franchisees adequate time to thoroughly review the document, seek legal counsel, and make an informed decision. The disclosure aims to prevent franchisees from being pressured into signing agreements without fully understanding their obligations and the risks involved.
It is important for prospective Checkersrallys franchisees to be aware of the specific regulations in their state, as state laws may provide additional protections or requirements beyond the federal mandate. Franchisees should consult with a franchise attorney to ensure they fully understand their rights and obligations under both federal and state laws.