What are the qualifications a Checkersrallys franchisee must meet to sign the Addendum?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee desires to qualify for, and to receive the benefits of, the Incentive in connection with its operation of the Franchised Restaurant under the Franchise Agreement; and
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 to our satisfaction, 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 a current franchisee in good standing with us, including being in full compliance with all currently effective agreements with us or our affiliates; and (b) you will develop the Franchised Restaurant in accordance with our current prescribed plans, specifications and design model for Restaurants (including,
without limitation, any modifications or adjustments we authorize and timely introduce for similarly-situated Restaurants, or otherwise incorporate into the System for all franchisees, before you open the Franchised Restaurant).
3. Conditional Development Incentive and Reduced Fee(s).
- a.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, to qualify for and receive the benefits of the incentive outlined in the Addendum, a franchisee must meet specific qualifications. These qualifications include representing to Checkersrallys's satisfaction, and providing supporting documentation, that they are a current franchisee in good standing. This includes being in full compliance with all currently effective agreements with Checkersrallys or its affiliates.
Additionally, the franchisee must commit to developing the Franchised Restaurant in accordance with Checkersrallys's current prescribed plans, specifications, and design model for Restaurants. This encompasses any modifications or adjustments Checkersrallys authorizes and introduces for similarly-situated Restaurants, or otherwise incorporates into the System for all franchisees, before the franchisee opens their Franchised Restaurant.
Meeting these qualifications allows the franchisee to modify the Franchise Agreement according to the terms and conditions set forth in the Addendum, enabling them to receive the incentive benefits tied to operating the Franchised Restaurant. The Addendum stipulates that it forms a part of the Franchise Agreement, with any conflicts between the provisions resolved in favor of the Addendum.