Does the Checkers franchise agreement allow Checkers to make decisions that apply differently to different franchisees?
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 to you and one (1) or more other franchisees; or (d) whether our decision or the exercise of our rights is adverse to your individual interests or the individual interests of any other particular franchisees. We will have no liability to you for any such decision or exercise of our rights.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, Checkers retains the right to make decisions that may affect franchisees differently. The agreement specifies that Checkers can operate and change its business in any manner not expressly prohibited by the franchise agreement. This includes the discretion to make decisions based on Checkers's best interests or the best interests of its franchise network, irrespective of whether these decisions might affect individual franchisees differently.
Specifically, Checkers's decisions can be based on their judgment of what benefits the franchise network, even if alternative decisions could be made or if the decision promotes Checkers's financial interests. The agreement explicitly states that Checkers's decisions can apply differently to franchisees and can be adverse to the interests of individual franchisees.
This clause means that Checkers franchisees may experience changes or decisions that uniquely affect their operations compared to other franchisees. While Checkers retains this broad discretion, the agreement stipulates that Checkers will not be liable for any such decisions or exercises of its rights. Prospective franchisees should carefully consider this aspect of the franchise agreement, understanding that Checkers has the power to make changes that could impact their individual business, and seek clarification on what recourse they may have if such changes negatively affect their franchise.