What section of the Checkersrallys Franchise Agreement outlines the fees obligations?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| OBLIGATION | SECTION IN AGREEMENT | DISCLOSURE DOCUMENT ITEM |
|---|---|---|
| a. Site selection and acquisition/lease | Sections 3.01, 3.02, 3.03, and Exhibit B of the Franchise Agreement; and Sections 3.01 and 3.02 and Exhibit A of the Development Agreement | Items 7, 8 and 11 |
| b. Pre-opening | Sections 3.03, 3.04 and 3.05 | Items 6, 7, 8 and 11 |
| purchases/leases | of the Franchise Agreement | |
| OBLIGATION | SECTION IN | DISCLOSURE |
| AGREEMENT | DOCUMENT ITEM | |
| c. Site development and | Sections 3.01, 3.02, 3.03, | Items 6, 7, 8 and 11 |
| other pre-opening | 3.04, 3.05 and 3.06 of the | |
| requirements | Franchise Agreement | |
| d. Initial and ongoing | Section 4 of the Franchise | Item 11 |
| training | Agreement | |
| e. Opening | Sections 3.06 and 3.07 of the Franchise Agreement | Item 11 |
| f. Fees | Section 6 of the Franchise Agreement; Sections 2.01 and 3.02 of the Development Agreement | Items 5, 6 and 7 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 44–46)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the franchisee's obligations regarding fees are detailed in Section 6 of the Franchise Agreement. This section is further referenced in Item 11 of the disclosure document. For area development agreements, fees are also addressed in Sections 2.01 and 3.02 of the Development Agreement, as outlined in Items 5, 6, and 7 of the disclosure document.
This means that as a prospective Checkersrallys franchisee, you should carefully review Section 6 of the Franchise Agreement to understand all fee-related obligations. This includes initial franchise fees, royalties, advertising fees, and any other fees payable to Checkersrallys during the term of the franchise agreement. Understanding these obligations is crucial for assessing the financial viability of the franchise.
Additionally, if entering into a Development Agreement, prospective franchisees should also examine Sections 2.01 and 3.02 of that agreement to understand the fees associated with developing multiple Checkersrallys locations. These sections likely cover development fees, timelines for development, and any penalties for failing to meet development quotas.
It is important to note that Item 11 of the FDD provides a general overview of franchisee obligations, but the specific details are found within the referenced sections of the Franchise Agreement and Development Agreement. Therefore, a thorough review of these sections is essential before making any investment decisions.