Under the Addendum, is Checkersrallys Franchisor considered a third-party beneficiary?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| ------------------------------------------------ | ------------------------------------------------------- | -------------------------------------------------------------------- | -- | -- |
|---|---|---|---|---|
| 2. | The Designated Area for the Franchised Restaurant is: | |||
| CHECKERS DRIVE-IN RESTAURANTS, | ||||
| INC., | a Delaware corporation | (Name of corporation, limited liability company or partnership) | ||
| By: | By: | |||
| Print Name: | Print Name: | |||
| Title: | Title: |
EXHIBIT C
TO THE FRANCHISE AGREEMENT
FRANCHISE ADDENDUM TO LEASE AGREEMENT
| THIS FRANCHISE ADDENDUM TO | LEASE AGREEMENT (this |
|---|---|
| "Addendum") is entered into this day of, 20, by and between | |
| , | ("Landlord") |
| a(n) | and |
| , a(n) ("Tenant") for the benefit | |
| of CHECKERS DRIVE-IN RESTAURANTS, INC., a Delaware corporation | |
| ("Franchisor"). |
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, specifically within Item 22 concerning contracts, the franchisor, Checkers Drive-In Restaurants, Inc., is explicitly identified as a beneficiary in the Franchise Addendum to Lease Agreement. This addendum is established between the Landlord and the Tenant (franchisee) to ensure that Checkersrallys's rights are protected within the lease agreement.
This arrangement means that Checkersrallys, although not a direct party to the lease between the landlord and tenant, benefits from specific terms included in that lease. These terms are designed to safeguard Checkersrallys's interests, and the landlord has agreed to these terms at Checkersrallys's requirement.
For a prospective Checkersrallys franchisee, this is a beneficial arrangement. It ensures that Checkersrallys has certain protections related to the leased premises, such as receiving copies of default notices, being informed of lease modifications, and having the opportunity to cure any default by the franchisee. This setup helps maintain the stability and integrity of the Checkersrallys franchise system by giving the franchisor some control and oversight regarding the leased property where the franchise operates.