What representation does the franchisee make to Checkersrallys regarding untrue statements or omissions of material facts?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You, and your Owners, if applicable, represent and warrant to us, that: (a) neither you nor any of your Owners has made any untrue statement of any material fact or has omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Owners has any direct or indirect legal or beneficial interest in any business that may be deemed a
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the franchisee and their owners represent and warrant to Checkersrallys that neither they nor their owners have made any untrue statement of any material fact or omitted to state any material fact in obtaining the franchise rights. This representation is crucial because Checkersrallys relies on the accuracy and completeness of the information provided in the franchise application when approving the franchise.
This means that a prospective Checkersrallys franchisee must ensure that all information provided during the application process is truthful, accurate, and complete. Any misrepresentation or omission, even if unintentional, could have legal consequences and potentially jeopardize the franchise agreement. This requirement underscores the importance of thoroughness and honesty when dealing with the franchisor.
In essence, Checkersrallys requires a guarantee from the franchisee that the information provided is reliable. This protects Checkersrallys from potential damages or losses resulting from inaccurate or incomplete information. Franchisees should carefully review all application materials and seek legal counsel if they are unsure about any disclosures required.