What qualifications must a Checkersrallys franchisee meet to sign the Non-Traditional Site 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, a franchisee must meet certain qualifications to sign the Non-Traditional Site Addendum. Specifically, the franchisee must be a current franchisee in good standing with Checkersrallys, which includes full compliance with all currently effective agreements with Checkersrallys or its affiliates.
Additionally, the franchisee must remain in good standing and continue to comply with all currently effective agreements, including the Franchise Agreement itself. The franchisee must also agree to open the franchised restaurant within one year of signing the Franchise Agreement. These qualifications ensure that franchisees operating at non-traditional sites meet Checkersrallys's standards.
If a Checkersrallys franchisee requests a transfer before opening the restaurant and Checkersrallys approves it, the franchisee must pay the full standard amount of the initial franchise fee that was reduced or waived under the addendum as a pre-closing condition of the transfer, in addition to any transfer fee payable. If a franchisee breaches or fails to satisfy any of the criteria listed in Section 2 of the addendum at any point during the term, they must pay Checkersrallys the amount or value of any fee reduction, discount, or other benefit afforded to them under the addendum, no later than thirty days after written notice from Checkersrallys.