factual

Does the Checkers franchise agreement specify that if we file a claim in a judicial or arbitration proceeding for amounts you or any of your Owners owe us or any of our Affiliates, or if we enforce this Agreement in a judicial or arbitration proceeding, and we prevail in any such proceeding, you agree to reimburse us for all of our costs and expenses, including reasonable accounting, paralegal, expert witness and attorneys' fees?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

10.04 Costs of Enforcement. If we file a claim in a judicial or arbitration proceeding for amounts you or any of your Owners owe us or any of our Affiliates, or if we enforce this Agreement in a judicial or arbitration proceeding, and we prevail in any such proceeding, you agree to reimburse us for all of our costs and expenses, including reasonable accounting, paralegal, expert witness and attorneys' fees. If we are required to engage legal counsel in connection with your failure to comply with this Agreement, you must reimburse us for any attorneys' fees, costs and expenses we incur.

Source: Item 23 — RECEIPTS (FDD pages 92–384)

What This Means (2025 FDD)

According to Checkers' 2025 Franchise Disclosure Document, the franchise agreement addresses costs of enforcement. Specifically, if Checkers files a claim against a franchisee (or their owners) in a judicial or arbitration proceeding for amounts owed to Checkers or its affiliates, and Checkers prevails, the franchisee must reimburse Checkers for all costs and expenses. These costs include reasonable accounting, paralegal, expert witness, and attorneys' fees.

This clause ensures that Checkers can recover expenses incurred when enforcing the franchise agreement or pursuing debts owed by franchisees. It also likely serves as a deterrent against franchisees failing to meet their financial obligations or breaching the agreement, as they would be responsible for Checkers' legal costs if they lose in court or arbitration.

Furthermore, if Checkers is required to engage legal counsel due to a franchisee's failure to comply with the agreement, the franchisee is obligated to reimburse Checkers for any attorneys' fees, costs, and expenses incurred. This provision reinforces the franchisee's responsibility to adhere to the terms of the franchise agreement and ensures that Checkers is not financially burdened by the franchisee's non-compliance.

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.