factual

Does the Checkers franchise agreement specify that the franchisor's waiver of an obligation is effective upon delivery of notice?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

18.02 Waiver of Obligations. We and you may by written instrument unilaterally waive or reduce any obligation of the other under this Agreement. Any waiver granted by us shall be without prejudice to any other rights we may have, will be subject to continuing review by us and may be revoked, in our sole discretion, at any time and for any reason, effective upon delivery to you of ten (10) days' prior notice. You and we shall not be deemed to have waived any right reserved by this Agreement by virtue of any custom or practice of the parties at variance with it; any failure, refusal or neglect by you or us to exercise any right under this Agreement (except as provided in Section 18.03) or to insist upon exact compliance by the other with its obligations hereunder; any waiver, forbearance, delay, failure or omission by us to exercise any right, whether of the same, similar or different nature, with respect to other Restaurants; or the acceptance by us of any payments due from you after any breach of this Agreement.

Source: Item 22 — CONTRACTS (FDD pages 91–92)

What This Means (2025 FDD)

According to Checkers' 2025 Franchise Disclosure Document, Checkers can waive obligations under the franchise agreement. Checkers can unilaterally waive or reduce any obligation of the franchisee through a written instrument.

However, any waiver granted by Checkers is not absolute. It is subject to continuing review by Checkers and can be revoked at any time, for any reason, at Checkers' sole discretion.

Importantly, such revocation becomes effective only upon delivery to the franchisee of ten (10) days' prior notice. This means that Checkers must provide the franchisee with a 10-day warning before the revocation of a waiver takes effect, giving the franchisee some time to adjust to the change. This clause protects Checkers while also providing a degree of predictability for the franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.