For Checkers, what agreement must a franchisee obtain from their Operating Partner before employment or promotion?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
t A (which will replace its predecessor version of Exhibit A) if we approve the change. Each person who is or becomes an Owner must execute an agreement in form and substance as we then prescribe, undertaking to be bound jointly and severally by this Agreement. Each Owner must be an individual acting in his individual capacity, unless we waive this requirement.
- 8.03 Operating Partner. If you are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, you must designate in Exhibit A as the "Operating Partner" an individual we approve who must: (a) own and control, or have the right to own and control (subject to conditions reasonably acceptable to us) not less than ten percent (10%) of your equity and voting rights; (b) have the authority to make, and bind you and all your Owners to, all operational decisions regarding the Franchised Restaurant; and (c) complete our training program to our satisfaction before engaging in his or her operational duties. You may not change the Operating Partner without our prior written consent.
You (or your Operating Partner): (a) shall exert full-time, best efforts to the development and operation of the Franchised Restaurant and all other Restaurants you own; and (b) may not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or otherwise may conflict with your obligations hereunder.
8.04 Management of Business. The Franchised Restaurant at all times must be under the direct, on-premises supervision of you (or your Operating Partner), or an Operator other than you (or your Operating Partner) that you appoint and authorize to conduct day-to-day business activities at the Franchised Restaurant, either of whom must (a) have sufficient experience (in our sole opinion) in the operation of a quick service restaurant; and (b) have successfully completed our initial training program to our satisfaction.
Even if you appoint an Operator for day-to-day operations, you (or your Operating Partner) must remain active in overseeing the Franchised Restaurant's ongoing business activities. If you (or your Operating Partner) own more than one Restaurant, then each such Restaurant must be under the direct on-premises
supervision of an Operator with sufficient experience (in our sole opinion) in the operation of a quick service restaurant that we have approved.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, a Checkers franchisee must ensure their Operating Partner completes the initial training program to Checkers' satisfaction before engaging in operational duties. If the franchisee is a business entity, the Operating Partner must be an individual approved by Checkers, own or have the right to control at least 10% of the franchisee's equity and voting rights, and have the authority to make operational decisions for the restaurant.
Furthermore, the franchisee must keep Checkers informed of the identity of their Operators and ensure they are competent. If an Operating Partner's relationship terminates, a successor must be hired promptly and also meet Checkers' approval and training requirements. The franchisee is responsible for all employment decisions, including hiring, firing, and training.
These requirements ensure that the Operating Partner is adequately trained and qualified to manage the Checkers restaurant, protecting the brand and maintaining operational standards. The approval and training requirements also give Checkers a degree of control over who manages the restaurant, even if they are not directly employed by Checkers. This is a common practice in franchising, where the franchisor seeks to maintain consistent quality and brand standards across all locations.
Prospective franchisees should carefully consider these requirements and ensure they can meet them before investing in a Checkers franchise. They should also be aware of their responsibilities for employment decisions and the need to maintain an approved and trained Operating Partner at all times.