Does the Checkers franchise agreement address the substitution of provisions based on applicable law?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
s imposed on our income). Payment of all such taxes shall be your responsibility. In the event of a bona fide dispute as to your liability for taxes, you may contest your liability in accordance with applicable law. In no event, however, will you permit a tax sale, seizure, or attachment to occur against the Franchised Restaurant or any of its assets.
18. MISCELLANEOUS.
18.01 Severability and Substitution of Provisions. Every part of this Agreement shall be considered severable. If for any reason any part of this Agreement is held to be invalid, that determination shall not impair the other parts
48
of this Agreement. If any covenant herein which restricts competitive activity is deemed unenforceable by virtue of its scope in terms of geographical area, type of business activity prohibited and/or length of time, but could be rendered enforceable by reducing any part or all of it, you and we agree that it will be enforced to the fullest extent permissible under applicable law and public policy.
If any applicable law requires a greater prior notice of the termination of or refusal to enter into a successor franchise than is required hereunder, a different standard of "good cause", or the taking of some other action not required hereunder, the prior notice, "good cause" standard and/or other action required by such law shall be substituted for the comparable provisions hereof.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the franchise agreement addresses the substitution of provisions based on applicable law. Specifically, the agreement states that if any applicable law requires a greater prior notice of termination, a different standard of "good cause," or any other action not required by the agreement, then the requirements of such law will be substituted for the comparable provisions in the agreement.
Additionally, if any provision of the agreement or any specification, standard, or operating procedure prescribed by Checkers is invalid or unenforceable under applicable law, Checkers has the right to modify the provision to the extent required to make it valid and enforceable. This ensures that the franchise agreement remains compliant with relevant laws and regulations.
This clause provides a degree of flexibility and legal compliance, which is beneficial for both Checkers and the franchisee. It means that the agreement can adapt to changes in the law without requiring a full renegotiation. However, it also grants Checkers the right to modify certain provisions to ensure enforceability, which franchisees should be aware of.