Can Checkersrallys require financial statements from the franchisee's owners?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) We also may require that you and your Owners furnish us financial statements (historical and pro forma), statements of the sources and uses of capital funds, budgets and other information regarding yourself, your Owners and the development and operation of any Restaurant you propose, as well as any then-existing Restaurants you and your Affiliates own. All such information shall be verified by you and your Owners as being complete and accurate in all respects, shall be submitted to us in accordance with our requirements and will be relied on by us in determining whether to grant a franchise for the proposed Restaurant. We may refuse to grant you a franchise for a Restaurant if you fail to demonstrate sufficient financial and management capabilities to properly develop and operate the proposed Restaurant and the then existing Restaurants you and your Affiliates own. We will evaluate such financial and management capabilities in accordance with standards we use to establish Restaurants in other comparable market areas.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys may require financial statements from both the franchisee and their owners. This includes historical and pro forma financial statements, statements of capital sources and uses, budgets, and other relevant information. This information helps Checkersrallys assess the financial and management capabilities of the franchisee and their owners.
Checkersrallys uses this information to determine whether to grant a franchise. They will evaluate the financial and management capabilities based on standards used in comparable market areas. Checkersrallys may refuse to grant a franchise if the franchisee fails to demonstrate sufficient financial and management capabilities to properly develop and operate the proposed restaurant, as well as any existing restaurants owned by the franchisee and their affiliates.
The franchisee and their owners must verify that all submitted financial information is complete and accurate. This information must be submitted according to Checkersrallys's requirements. By requiring this information, Checkersrallys aims to ensure that franchisees have the necessary resources and skills to succeed, which protects the brand and the interests of other franchisees in the system.