How does the Checkersrallys Non-Traditional Site Addendum relate to the existing Franchise Agreement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
" or collectively, the "Parties." | | | | | | | |
R E C I T A L S
| | WHEREAS, Franchisor | | | and Franchisee are Parties to that certain Franchise Agreement | | | | | | |------------|---------------------|----|---|---------------------------------------------------------------------------------------------|------|------|----|---------|----| | | | | | dated of even date herewith (including all related exhibits and attachments, the "Franchise Agreement") pursuant to which Franchisee will operate a franchised "Checkers" or "Rally's" | | | | | | | restaurant | located | at | a | Non-Traditional (the "Franchised Restaurant"); and | Site | with | an | address | of | 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.
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- Qualifications. You represent, and in connection with signing this Addendum have provided us (or agree to provide promptly upon our request) relevant supporting documentation, that: (a) you are authorized, or will obtain due authorization, to establish and operate a Restaurant within or from the premises of a Non-Traditional Site; and (b) you will remain a franc
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 modifies the existing Franchise Agreement under specific terms and conditions. The Addendum is annexed to and becomes part of the Franchise Agreement, with capitalized terms retaining the definitions outlined in the original agreement unless otherwise specified in the Addendum. Except for the modifications explicitly stated in the Addendum, the original Franchise Agreement remains fully effective. In case of any conflict between the Addendum and the Franchise Agreement, the provisions of the Addendum will take precedence.
Several aspects of the Franchise Agreement are altered by the Non-Traditional Site Addendum. For instance, the initial franchise fee may be reduced by $15,000 from the standard fee for a new restaurant. Additionally, the royalty fee is revised to 2% of Net Sales. These modifications are specifically designed to reflect the franchisee's operation of a Checkersrallys restaurant from a non-traditional site.
However, Checkersrallys franchisees operating at Non-Traditional Sites should be aware that they will not receive any territorial protection or exclusivity under the addendum or the franchise agreement. Checkersrallys retains full rights regarding the Marks, the System, and the sale of similar or dissimilar products and services. The franchisor can operate or franchise Checkersrallys restaurants anywhere, engaging in any business activities they desire during the term of the agreement. Franchisees must also meet certain qualifications, such as being authorized to operate within the Non-Traditional Site and remaining a franchisee in good standing, complying with the Franchise Agreement.