factual

What is the dependency between a franchisee's failure to comply and Checkers' right to engage legal counsel?

Q: What is the dependency between a franchisee's failure to comply and Checkers' right to engage legal counsel?

**10.04 Costs of Enforcement.** If we file a claim in a judicial or arbitration proceeding for amounts you or any of your Owners owe us or any of our Affiliates, or if we enforce this Agreement in a judicial or arbitration proceeding, and we prevail in any such proceeding, you agree to reimburse us for all of our costs and expenses, including reasonable accounting, paralegal, expert witness and attorneys' fees. If we are required to engage legal counsel in connection with your failure to comply with this Agreement, you must reimburse us for any attorneys' fees, costs and expenses we incur. Source: Item 23 — RECEIPTS (FDD pages 92–384)

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

10.04 Costs of Enforcement. If we file a claim in a judicial or arbitration proceeding for amounts you or any of your Owners owe us or any of our Affiliates, or if we enforce this Agreement in a judicial or arbitration proceeding, and we prevail in any such proceeding, you agree to reimburse us for all of our costs and expenses, including reasonable accounting, paralegal, expert witness and attorneys' fees. If we are required to engage legal counsel in connection with your failure to comply with this Agreement, you must reimburse us for any attorneys' fees, costs and expenses we incur.

Source: Item 23 — RECEIPTS (FDD pages 92–384)

What This Means (2025 FDD)

According to Checkers' 2025 Franchise Disclosure Document, Checkers has the right to engage legal counsel if a franchisee fails to comply with the Franchise Agreement. If Checkers is required to engage legal counsel due to the franchisee's non-compliance, the franchisee is obligated to reimburse Checkers for all attorneys' fees, costs, and expenses incurred.

This provision means that franchisees must adhere strictly to the terms outlined in the Franchise Agreement to avoid potential legal costs. Non-compliance can trigger Checkers' right to seek legal counsel, and the franchisee will bear the financial burden of those legal services. This creates a direct financial risk for franchisees who do not meet their contractual obligations.

Franchisees should carefully review the Franchise Agreement and seek legal advice to fully understand their obligations and the potential consequences of non-compliance. This clause is a standard inclusion in franchise agreements, designed to protect the franchisor's interests and ensure franchisees adhere to the agreed-upon terms. It is important for prospective franchisees to factor in potential legal costs when evaluating the financial risks associated with the franchise.

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.

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