What are the two qualifications a franchisee must meet to sign the addendum with Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
or for the operation of at least two (2) "Checkers" or "Rally's" restaurants;
| | WHEREAS, Franchisor | | | | and Franchisee are Parties to that certain Franchise Agreement | | | |---------|---------------------|-------------------------------------------------------------------------------------------|----|-----------|----------------------------------------------------------------|---------|----| | | | dated of even date herewith (the "Franchise Agreement") pursuant to which Franchisee will | | | | | | | operate | another | "Checkers" (the "Franchised Restaurant"); | or | "Rally's" | restaurant | located | at | WHEREAS, Franchisee desires to qualify for and receive, the benefits of the Incentive; and
WHEREAS, the Parties now desire to modify the Franchise Agreement according to the terms and conditions set forth in this Addendum.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
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- Relationship to Franchise Agreement; Recitals. This Addendum shall be annexed to and form a part of the Franchise Agreement. All capitalized terms not otherwise defined in this Addendum shall have the meanings set forth in the Franchise Agreement. Except as modified by this Addendum, the Franchise Agreement remains in full force and effect. Any conflict between the provisions hereof and the Franchise Agreement shall be construed in favor of this Addendum. All references in this Addendum to "Sections," "Subsections," and/or "Exhibits" shall mean the applicable Section(s), Subsection(s), and/or Exhibit(s) of the Franchise Agreement, unless specified otherwise below. The Recitals above are incorporated into this Addendum by reference.
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- Qualifications. You represent, and in connection with signing this Addendum have provided us (or agree to provide promptly upon our request) relevant supporting documentation, that: (a) you are a current franchisee in good standing
with us, including being in full compliance with all currently effective agreements with us or our affiliates; and (b) you will remain a franchis
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, there are three qualifications a franchisee must meet to sign the addendum. First, the franchisee must be a current franchisee in good standing with Checkersrallys, which includes being in full compliance with all currently effective agreements with Checkersrallys or its affiliates. Second, the franchisee must remain a franchisee in good standing and comply with all currently effective agreements with Checkersrallys or its affiliates, including the Franchise Agreement. Third, the franchisee must agree to open the Franchised Restaurant within one year of signing the Franchise Agreement.
These qualifications are important because they ensure that the franchisee is committed to the Checkersrallys system and has a proven track record of success. By requiring franchisees to be in good standing and to comply with all agreements, Checkersrallys can protect its brand and ensure that all franchisees are operating to a certain standard. The requirement to open the Franchised Restaurant within one year of signing the Franchise Agreement ensures that franchisees are serious about opening their restaurant and are not just sitting on the franchise rights.
Meeting these qualifications allows the franchisee to receive the benefits of the incentive, which includes a reduction of $10,000 from the standard initial franchise fee for a new restaurant. However, if the franchisee fails to meet any of these qualifications at any point during the term, they will be required to pay Checkersrallys the amount of the Initial Fee Reduction no later than thirty days after written notice. This addendum modifies the original Franchise Agreement, and in case of conflict, the addendum prevails.