What is the required action by Checkersrallys before making a material modification to an existing franchise in California?

According to Checkersrallys's 2025 Franchise Disclosure Document, California Corporations Code Section 31125 mandates that Checkersrallys must provide a disclosure document to the franchisee before soliciting a proposed material modification to an existing franchise. This disclosure document must be in a format containing the information that the Commissioner may require.

In simpler terms, if Checkersrallys wants to change something significant in your existing franchise agreement in California, they can't just do it. They first have to give you a specific disclosure document. This document has to contain all the information that the California Commissioner requires. This requirement ensures that franchisees are fully informed before agreeing to any major changes to their franchise agreements.

This provision aims to protect franchisees by ensuring transparency and providing them with the necessary information to make informed decisions about proposed modifications to their franchise agreements. It prevents franchisors from unilaterally imposing changes without proper disclosure and allows franchisees to assess the potential impact of the modifications on their business.