Does the Checkers franchise agreement intend to make either party a general or special agent of the other?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing contained in this Agreement, or arising from the conduct of the parties hereunder, is intended to make either party a general or special agent, joint venturer, partner or employee of the other for any purpose whatsoever. You must conspicuously identify yourself in all dealings with customers, lessors, contractors, suppliers, public officials, employees and others as the owner of the Franchised Restaurant and must place such other notices of independent ownership on such forms, business cards, stationery, advertising and other materials as we may require at any time and from time to time.
You may not make any express or implied agreements, warranties, guarantees or representations or incur any debt in our name or on our behalf or represent that the relationship of the parties hereto is anything other than that of independent contractors. We will not be obligated by or have any liability under any agreements made by you with any third party or for any representations made by you to any
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the franchise agreement explicitly states that neither party is intended to be a general or special agent, joint venturer, partner, or employee of the other for any purpose. The franchisee is required to identify themselves as the owner of the franchised restaurant in all dealings with customers, lessors, contractors, suppliers, public officials, and employees. They must also include notices of independent ownership on forms, business cards, stationery, advertising, and other materials as required by Checkers.
This means that as a Checkers franchisee, you are an independent contractor and cannot make any agreements, warranties, guarantees, or representations on behalf of Checkers, nor can you incur any debt in Checkers' name. The agreement also clarifies that Checkers will not be obligated by or have any liability under agreements made by the franchisee with third parties or for any representations made by the franchisee to any third party. Checkers is also not responsible for damages to any person or property arising directly or indirectly from the operation of the franchisee's business.
This type of clause is standard in franchise agreements to protect the franchisor from liabilities incurred by franchisees and to ensure that franchisees operate independently. It reinforces that the franchisee is responsible for their own business operations and obligations. Prospective franchisees should understand that they are entering into a business relationship as independent operators, not as employees or agents of Checkers.