Does the Checkers franchise agreement grant Checkers the right to make decisions that may affect the franchisee's interests?
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 Checkers's 2025 Franchise Disclosure Document, the franchise agreement grants Checkers the right to make decisions that may affect a franchisee's interests. The agreement specifies that Checkers has the right to make decisions, take actions, or refrain from taking actions that may affect a franchisee's interests, whether favorably or adversely, as long as these actions are consistent with the franchisee's explicit rights and obligations under the agreement.
Checkers retains the right to operate and change the System and its business in any manner not expressly prohibited by the franchise agreement. When Checkers has reserved a right or discretion to take or withhold action, it may base its decision on what it deems to be in its best interests, including the best interests of its franchise network.
This means Checkers is not obligated to consider whether other, possibly better, decisions could have been made, whether its decision benefits its own financial interests, whether the decision affects franchisees differently, or whether the decision is adverse to a franchisee's individual interests. Checkers will not be liable to the franchisee for any such decision or exercise of its rights. This clause emphasizes the independent contractor relationship between Checkers and its franchisees, and it underscores that the franchisee bears the risks associated with the business venture.