Under the Checkersrallys Franchise Agreement, which specific sections of the agreement are the undersigned owners personally liable for the breach of?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| In consideration of, and as an inducement to, the execution of the Franchise |
|---|
| Agreement dated as of |
| , |
| (the "Agreement") by and |
| between |
| CHECKERS |
| DRIVE-IN |
| RESTAURANTS, |
| INC. |
| ("Franchisor"), |
| and |
| ("Franchisee"), each of the undersigned owners of an |
| interest 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 owners of an interest in the franchisee are personally liable for specific sections of the Franchise Agreement. As an inducement to the execution of the Franchise Agreement, the owners guarantee the franchisee's performance and representations.
Specifically, the owners agree to be personally bound by and liable for breaches of Sections 5, 7, 8, 13, 16, and 18 (including Section 18.05) of the Franchise Agreement. These sections likely cover key operational and financial obligations.
This personal liability clause means that if the Checkersrallys franchisee fails to meet the obligations outlined in those sections, the franchisor can pursue the owners directly for damages or specific performance. Prospective franchisees should carefully review these sections of the Franchise Agreement with legal counsel to fully understand the scope of their personal liability.