What is the deadline for providing written notice of a breach or violation of the Checkers franchise agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
10.03 Exercise of Rights of Parties. The rights of Franchisor and Area Franchisee hereunder are cumulative and no exercise or enforcement by Franchisor or Area Franchisee of any right or remedy hereunder shall preclude the exercise or enforcement by Franchisor or Area Franchisee of any other right or remedy hereunder which Franchisor or Area Franchisee is entitled to enforce by law. If Area Franchisee commits any act of default under this Agreement for which Franchisor exercises its right to terminate this Agreement, Area Franchisee shall pay to Franchisor all actual, consequential, special and incidental damages Franchisor incurs as a result of the premature termination of this Agreement regardless of whether or not such damages are reasonably foreseeable. Area Franchisee acknowledges and agrees that the proximate cause of such damages sustained by Franchisor is Area Franchisee's act of default and not Franchisor's exercise of its right to terminate. 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, both Checkers and the Area Franchisee have a limited time to formally address breaches or violations of the franchise agreement. Specifically, if either party fails to assert their rights regarding a breach, that failure will be considered a waiver of those rights.
To avoid waiving their rights, the party must provide written notice specifying the breach or violation to the other party within 12 months. This 12-month period starts from the later of two dates: either the actual date of the breach or violation, or the date when the facts of the breach were discovered (or could have been discovered with reasonable effort).
This requirement ensures that both Checkers and its franchisees act promptly to address any issues, preventing problems from escalating and protecting their respective interests. It also promotes open communication and timely resolution of disputes, which is crucial for maintaining a healthy franchisor-franchisee relationship.