factual

Who is authorized to manage a Checkers franchised restaurant if not the franchisee or Operating Partner?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

The Franchised Restaurant at all times must be under the direct, on-premises supervision of you (or your Operating Partner), or otherwise a manager-level employee 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. Your Operating Partner will be required to sign our Nondisclosure and Non-Competition Agreement, but we do not require manager-level employees to sign our Nondisclosure and Non-Competition Agreement. Your manager-level employee is not required to own equity in you.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 64–65)

What This Means (2025 FDD)

According to Checkers's 2025 Franchise Disclosure Document, if neither the franchisee nor an Operating Partner is managing the restaurant, a manager-level employee can be authorized to conduct day-to-day business activities. This manager must be appointed and authorized by the franchisee or Operating Partner.

For a manager-level employee to qualify, they must have sufficient experience, in Checkers's opinion, in operating a quick-service restaurant. Additionally, they must successfully complete Checkers's initial training program to the franchisor's satisfaction. Unlike the Operating Partner, the manager-level employee is not required to own equity in the franchise and does not need to sign a Nondisclosure and Non-Competition Agreement.

Even with a manager in place, the franchisee or Operating Partner must remain active in overseeing the restaurant's ongoing business activities. The franchisee or Operating Partner is responsible for all employment decisions, including hiring, firing, compensation, and training. They must also keep Checkers informed about the identity of their operators and ensure these personnel are competent in their duties.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.