Does the Checkers franchise agreement require a franchisee to assent to a release that deprives them of rights and protections?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the following provisions is void and unenforceable if contained in any documents relating to a franchise:
- (b) A requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel which deprives a franchisee of rights and protections provided in this act. This shall not preclude a franchisee, after entering into a franchise agreement from settling any and all claims.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, the franchise agreement's requirements regarding releases and waivers vary by state. For franchisees in Michigan, the FDD states that any requirement for a franchisee to assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections provided under the Michigan Franchise Investment Law is void and unenforceable. This means Checkers cannot enforce such provisions against franchisees in Michigan.
For franchisees in Maryland, any general releases signed will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees do not waive rights granted by Maryland franchise law through general releases. Similarly, any limitation on the time to bring arbitration or litigation claims cannot reduce the three-year statute of limitations for claims arising under the Maryland Franchise Registration and Disclosure Law.
For franchisees in Minnesota, the FDD states that a franchisee cannot waive any rights, consent to Checkers obtaining injunctive relief, or be required to consent to a waiver of a jury trial. Any general release of claims must exclude claims under the Minnesota Franchise Law and its regulations. These stipulations protect the rights of Checkers franchisees in Minnesota under state law. Therefore, prospective franchisees should carefully review the addenda specific to their state to understand the extent to which releases and waivers are enforceable.