Does the Checkers franchise agreement specify that Checkers has no liability to the franchisee for decisions made in the best interests of the franchise network?
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 addresses Checkers's liability regarding decisions made in the best interest of the franchise network. The agreement specifies that Checkers has the right to make decisions, take actions, or refrain from actions that may affect the franchisee's interests, 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 agreement. When Checkers reserves the right to take or withhold action, it may base its decision on its judgment of what is in its best interests, including the best interests of its franchise network. This can be done without regard to whether other reasonable alternatives exist, whether the decision promotes Checkers's financial interests, whether the decision applies differently to franchisees, or whether the decision is adverse to a franchisee's individual interests.
The franchise agreement explicitly states that Checkers will have no liability to the franchisee for any such decision or exercise of its rights. This means that franchisees bear the risk that decisions made by Checkers, even if intended to benefit the franchise network as a whole, may negatively impact their individual business without recourse against Checkers.