What is the deadline for discovering facts giving rise to a breach or violation of the Checkers franchise agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, and except as otherwise prohibited or limited by applicable law, any failure, neglect, or delay of a party to assert any breach or violation of any legal or equitable right arising from or in connection with this Agreement, shall constitute a waiver of such right and shall preclude the exercise or enforcement of any legal or equitable remedy arising therefrom, unless written notice specifying such breach or violation is provided to the other party within 12 months after the later of: (a) the date of such breach or violation; or (b) the date of discovery of the facts (or the date the facts could have been discovered, using reasonable diligence) giving rise to such breach or violation.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, if either Checkers or the area franchisee fails to assert a breach or violation of any legal or equitable right related to the franchise agreement, it will be considered a waiver of that right. To avoid waiving their rights, the party must provide written notice specifying the breach or violation within 12 months.
The 12-month period starts from the later of two dates: either the date of the breach or violation itself, or the date when the facts giving rise to the breach or violation were discovered (or could have been discovered through reasonable diligence). This means a franchisee needs to be proactive in identifying and reporting any potential issues to Checkers within this timeframe to preserve their legal rights.
This clause emphasizes the importance of due diligence and timely communication. A Checkers franchisee should establish internal processes for monitoring compliance with the franchise agreement and promptly addressing any concerns. Failure to do so within the 12-month discovery window could result in the loss of legal recourse, potentially impacting the franchisee's ability to resolve disputes or seek compensation for damages.