What authority must the Operating Partner of a Checkers franchise have?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if the franchisee is a business entity, they must designate an Operating Partner. This Operating Partner must be approved by Checkers and must meet specific requirements to ensure they can effectively manage the franchise.
The Operating Partner must own and control, or have the right to own and control (subject to conditions reasonably acceptable to Checkers), at least 10% of the franchisee's equity and voting rights. This ensures the Operating Partner has a vested interest in the success of the Checkers franchise and is motivated to manage it effectively. They also must have the authority to make operational decisions for the restaurant and bind the franchisee and all owners to those decisions. This means the Operating Partner has the power to make critical choices about the day-to-day running of the Checkers location.
Furthermore, the Operating Partner must complete Checkers' training program to the franchisor's satisfaction before starting their operational duties. This training ensures the Operating Partner is knowledgeable about the Checkers system and can properly implement it at the franchise. Checkers retains the right to approve the Operating Partner and must be notified of any changes. This allows Checkers to maintain standards across all franchise locations and protect the brand's reputation.