Does the Checkers franchise agreement allow Checkers to change the System in any way that is not specifically prohibited?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you acknowledge and agree that this Agreement (and the relationship of the parties which arises from this Agreement) grants us the right to make decisions, take actions and/or refrain from taking actions not inconsistent with your explicit rights and obligations hereunder that may affect favorably or adversely your interests. You understand and agree that we may operate and change the System and our business in any manner that is not expressly and specifically prohibited by this Agreement. Whenever we have reserved in this Agreement a right and/or discretion to take or withhold an action, or to grant or decline to grant you a right to take or withhold an action, except as otherwise expressly and specifically provided in this Agreement, we may make our decision or exercise our right and/or discretion on the basis of our judgment of what is in our best interests, including our judgment of what is in the best interests of our franchise network, at the time our decision is made, without regard to: (a) whether other reasonable or even arguably preferable alternative decisions or actions could have been made by us; (b) whether our decision or the action we take promotes our financial or other individual interest; (c) whether our decision or the action we take applies differently t
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the franchise agreement grants Checkers the right to make changes to the System as long as those changes are not expressly prohibited. This means Checkers has broad discretion to evolve its business model, operational procedures, and brand standards.
For a prospective franchisee, this clause signifies that the Checkers business they invest in today could look quite different in the future. Checkers could modify the menu, introduce new technologies, alter marketing strategies, or change required equipment. While these changes are intended to improve the System, they could also require franchisees to make additional investments or adapt to new ways of doing business.
This level of franchisor control is common in the franchise industry, as it allows brands to maintain consistency and adapt to market changes. However, it also places a degree of risk on the franchisee, who must be prepared to embrace changes dictated by Checkers. Franchisees should seek clarification during their due diligence about the types of changes Checkers anticipates making and how those changes might impact their operations and profitability. Understanding the potential for change is crucial for assessing the long-term viability of a Checkers franchise.