What organizational documents must a Checkersrallys franchisee provide to the franchisor, and when must amendments to these documents be delivered?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
8.01 Organizational Documents.If you are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, you and each of your Owners represent, warrant and agree that: (a) you are duly organized and validly existing under the laws of the state of your organization, and, if a foreign business corporation, partnership, limited liability company or other legal entity, you are duly qualified to transact business in the state in which the Franchised Restaurant is located; (b) your undersigned signatory below has the authority to execute and deliver this Agreement on your behalf and that you are able and authorized to perform your obligations hereunder; (c) true and complete copies of the articles of incorporation, partnership agreement, bylaws, subscription agreements, buy-sell agreements, voting trust agreements and all other documents relating to your ownership, organization, capitalization, management and control have been delivered to us and all amendments thereto shall be promptly delivered to us; (d) your activities are restricted to those necessary solely for the development, ownership and operation of Restaurants in accordance with this Agreement and in accordance with any other agreements entered into with us or any of our Affiliates; (e) the articles of incorporation, partnership agreement or other organizational documents recite that the issuance, transfer or pledge of any direct or indirect legal or beneficial ownership interest is restricted by the terms of this Agreement; and (f) all certificates representing direct or indirect legal or beneficial ownership interests now or hereafter issued must bear a legend in conformity with applicable law reciting or referring to such restrictions.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee is or becomes a business corporation, partnership, limited liability company, or other legal entity, they must provide true and complete copies of several organizational documents to Checkersrallys. These documents include the articles of incorporation, partnership agreement, bylaws, subscription agreements, buy-sell agreements, voting trust agreements, and all other documents relating to the franchisee's ownership, organization, capitalization, management, and control.
Furthermore, the franchisee is obligated to promptly deliver any amendments to these organizational documents to Checkersrallys. This ensures that Checkersrallys remains informed about the current structure and operational agreements of its franchisees.
This requirement is fairly standard in franchising, as franchisors need to ensure that franchisees adhere to the franchise agreement and maintain appropriate business practices. By requiring these documents and their amendments, Checkersrallys can monitor the franchisee's compliance and protect the integrity of the brand.