What representation must a Checkersrallys franchisee make, and what documentation must they provide, in connection with signing the Addendum?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
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 make certain representations and provide supporting documentation when signing the Addendum to the franchise agreement. Specifically, the franchisee must represent that they are a current franchisee in good standing with Checkersrallys, which includes full compliance with all effective agreements with Checkersrallys or its affiliates. They must also represent that they will remain a franchisee in good standing and continue to comply with all effective agreements, including the Franchise Agreement itself. Finally, the franchisee must agree to open the franchised restaurant within one year of signing the Franchise Agreement.
To support these representations, the franchisee must provide relevant documentation to Checkersrallys. While the specific documents are not detailed in this section, they would likely include items that demonstrate the franchisee's current good standing, such as compliance reports, financial statements, and any other records that Checkersrallys deems necessary. It is important for prospective franchisees to understand that failure to meet these qualifications or provide the required documentation could impact their eligibility for incentives or continued operation under the franchise agreement.
These requirements are in place to ensure that franchisees receiving incentives are committed to the Checkersrallys brand and are in a position to successfully operate their restaurants. By requiring these representations and supporting documentation, Checkersrallys aims to mitigate risks associated with franchisees who may not be fully compliant or committed to the system. This also protects the brand's reputation and ensures a consistent customer experience across all locations. Franchisees should carefully review these requirements and ensure they can meet them before signing the Addendum.