What is required of Checkersrallys before soliciting a proposed material modification of an existing franchise in California?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 31125 of the California Corporations Code requires us to give you a disclosure document, in a form containing the information that the Commissioner may by rule or order require, before a solicitation of a proposed material modification of an existing franchise.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, California Corporations Code Section 31125 mandates that Checkersrallys provide a disclosure document to prospective franchisees before soliciting a proposed material modification of an existing franchise. This disclosure document must be in a format containing the information that the Commissioner may require by rule or order.
This requirement ensures that franchisees in California are fully informed about any proposed changes to their franchise agreement before they agree to them. The disclosure document must contain all information required by the California Commissioner, which may include details about the modification's potential impact on the franchisee's business, financial obligations, and rights.
For a prospective Checkersrallys franchisee in California, this means that Checkersrallys must provide a specific disclosure document before asking them to agree to any significant changes to their existing franchise agreement. Franchisees should carefully review this document and seek legal counsel to understand their rights and obligations before consenting to any modifications.