What representation must franchisees and their owners make to Checkersrallys regarding untrue statements?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.03 Your Representations. You and your Owners, if applicable, represent and warrant to us that: (a) neither you nor any of your Owners have made any untrue statement of any material fact or have omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Owners have any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business, except as otherwise fully and accurately disclosed in your franchise application submitted to us; and (c) the execution and performance of this Agreement will not violate any other agreement to which you or any of your Owners may be bound. You recognize that we have approved your franchise application in reliance on all of the statements you and your Owners have made in connection therewith.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees and their owners must represent and warrant that they have not made any untrue statements of material fact or omitted any material fact when obtaining franchise rights. This representation is crucial because Checkersrallys relies on the accuracy of the information provided in the franchise application when approving it.
This means that prospective Checkersrallys franchisees must ensure that all information provided during the application process is truthful, accurate, and complete. Any misrepresentation or omission, even if unintentional, could potentially lead to legal issues or termination of the franchise agreement. This requirement underscores the importance of due diligence and transparency on the part of the franchisee.
Furthermore, the representation extends not only to the franchisee but also to their owners, if applicable. This indicates that Checkersrallys places significant emphasis on the integrity of all parties involved in the franchise operation. Franchisees should carefully review all application materials and disclosures to ensure compliance with this requirement and to avoid any potential disputes or liabilities down the line.