In the Checkers franchise agreement, what is the effect of Checkers exercising a right or remedy?
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 Checkers' 2025 Franchise Disclosure Document, the rights of Checkers as the Franchisor are cumulative. Exercising or enforcing any right or remedy does not prevent Checkers from using any other right or remedy they are entitled to by law.
If an Area Franchisee defaults on the agreement and Checkers terminates the agreement, the Area Franchisee must pay Checkers for all actual, consequential, special, and incidental damages that Checkers incurs because of the early termination, regardless of foreseeability. The Area Franchisee acknowledges that their default, not Checkers' termination, is the primary cause of these damages.
However, Checkers' failure, neglect, or delay to assert a breach or violation of any legal or equitable right from the agreement constitutes a waiver of that right. This precludes Checkers from exercising any legal or equitable remedy unless written notice specifying the breach or violation is provided to the Area Franchisee within 12 months after the later of the date of the breach/violation or the date the facts of the breach/violation were discovered or could have been discovered with reasonable diligence. This clause ensures that Checkers must act promptly upon discovering a breach to maintain their rights.