What are the qualifications a franchisee must meet to sign the Checkersrallys Addendum?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee desires to qualify for and receive, the benefits of the Incentive; 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, 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 remain a franchisee in good standing, and comply with all currently effective agreements with us or our affiliates including the Franchise Agreement; and (c) you agree to open the Franchised Restaurant within one (1) year of signing the Franchise Agreement.
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. The franchisee must currently be in good standing with Checkersrallys, which includes full compliance with all existing agreements with Checkersrallys or its affiliates.
Furthermore, the franchisee must maintain this good standing and continue to comply with all effective agreements, including the Franchise Agreement itself. Additionally, the franchisee must commit to opening the franchised restaurant within one year of signing the Franchise Agreement. These qualifications ensure that franchisees receiving incentives are committed, compliant, and ready to promptly establish their Checkersrallys restaurant.
These requirements are designed to protect Checkersrallys's interests by ensuring that franchisees who receive incentives are serious about opening and operating their restaurants in a timely and compliant manner. If a franchisee fails to meet these qualifications or breaches any of the agreements, Checkersrallys has the right to revoke the benefits of the Addendum. This could mean the franchisee would have to pay back any fee reductions or discounts they received.