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What is the consequence if the Operating Partner of a Checkers franchise engages in operational duties before completing the training program to the franchisor's satisfaction?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

ing 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.

You (or your Operating Partner) must keep us informed at all times of the identity of your Operator(s), and ensure that such personnel are competent and proficient in their duties.

Source: Item 22 — CONTRACTS (FDD pages 91–92)

What This Means (2025 FDD)

According to Checkers's 2025 Franchise Disclosure Document, the Franchised Restaurant 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 Checkers's sole opinion) in the operation of a quick service restaurant; and (b) have successfully completed Checkers's initial training program to Checkers's 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. You (or your Operating Partner) must keep Checkers informed at all times of the identity of your Operator(s), and ensure that such personnel are competent and proficient in their duties.

If the Operating Partner does not complete the training program to Checkers's satisfaction, the franchisee must immediately replace that Operating Partner. This highlights the importance of ensuring that the Operating Partner is fully trained and meets Checkers's standards before overseeing the restaurant's operations. The franchisee is responsible for all employment decisions, including training, and must ensure that all personnel are competent.

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.