For Checkersrallys, what sections of the Franchise Agreement are the undersigned owners personally bound by and liable for?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
in Franchisee hereby personally and unconditionally: | (1) guarantees to | Franchisor and its successors and assigns, for the term of the Agreement and | thereafter as provided in the Agreement, that Franchisee shall punctually pay and | perform each and every undertaking, agreement and covenant set forth in the | Agreement and that each and every representation of Franchisee made in | connection with the Agreement are true, correct and complete in all respects at and | as of the time given; and (2) agrees personally to be bound by, and personally liable | for the breach of, each and every provision in the Agreement, including without | limitation, Sections 5, 7, 8, 13, 16 and 18 (for the avoidance of doubt, including | Section 18.05) thereof.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the undersigned owners of an interest in the franchisee are personally bound by and liable for the breach of every provision in the Franchise Agreement. This includes, without limitation, Sections 5, 7, 8, 13, 16, and 18 (specifically including Section 18.05).
This means that the personal assets of the owners could be at risk if the Checkersrallys franchise violates any of these sections. These sections likely cover critical aspects of the franchise operation, such as adherence to brand standards, payment obligations, and compliance with operational procedures. The personal guarantee extends for the term of the agreement and even after, as provided in the agreement.
For a prospective Checkersrallys franchisee, this clause underscores the importance of understanding all aspects of the Franchise Agreement and ensuring full compliance. It is crucial to seek legal counsel to fully understand the implications of providing a personal guarantee and the potential risks involved. Franchisees should pay particular attention to Sections 5, 7, 8, 13, 16, and 18 to avoid any actions that could lead to personal liability.