Does the Checkers franchise agreement specify that Checkers will not be liable for representations made by the franchisee to third parties?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
5.01 Independent Contractors. Neither this Agreement nor the dealings of the parties pursuant to this Agreement shall create any fiduciary relationship or any other relationship of trust or confidence. Franchisor and Area Franchisee, as between themselves, are and shall be independent contractors.
You must conspicuously identify yourself in all dealings with customers, lessors, contractors, suppliers, public officials, personnel and others as the owner of development rights granted hereunder and must place such other notices of independent ownership on such forms, business cards, stationery, advertising and other materials as we require at any time and from time to time.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
The 2025 Checkers Franchise Disclosure Document states in Section 5.01 that the franchisee is an independent contractor. It specifies that neither the agreement nor the dealings between Checkers and the franchisee create any fiduciary relationship.
The agreement states that franchisees must identify themselves as the owners of their development rights in all dealings with customers, lessors, contractors, suppliers, public officials, personnel, and others. Franchisees must also include notices of independent ownership on forms, business cards, stationery, advertising, and other materials as required by Checkers.
This clause serves to clarify that Checkers franchisees are independent business owners and not agents of Checkers. This distinction is important because it helps to protect Checkers from liability for the franchisee's actions and representations. Franchisees are responsible for their own business operations and must ensure that their representations to third parties are accurate and compliant with all applicable laws and regulations.