Does Checkers allow franchisees to agree to conduct arbitration outside of their state at the time of arbitration?

According to Checkers' 2025 Franchise Disclosure Document, the franchise agreement cannot require arbitration or litigation to be conducted outside of the franchisee's state. However, Checkers will allow a franchisee to enter into an agreement, at the time of arbitration, to conduct arbitration at a location outside of their state. This addendum applies specifically to Michigan franchisees.

This means that while the initial franchise agreement cannot force a Michigan franchisee into out-of-state arbitration, the franchisee can later agree to it if a dispute arises. This provides some flexibility but also puts the franchisee in a position where they might feel pressured to agree to out-of-state arbitration to resolve a dispute.

For prospective Checkers franchisees in Michigan, it's important to understand this provision. While the initial agreement offers some protection, the possibility of agreeing to out-of-state arbitration later exists. Franchisees should carefully consider the implications of such an agreement, including potential increased costs and logistical challenges, before consenting.