Does the Checkers franchise agreement specify that notwithstanding the foregoing, and except as otherwise prohibited or limited by applicable law, any failure, neglect, or delay of a party to assert any breach or violation of any legal or equitable right arising from or in connection with this Agreement, shall constitute a waiver of such right and shall preclude the exercise or enforcement of any legal or equitable remedy arising therefrom, unless written notice specifying such breach or violation is provided to the other party within 12 months after the later of: (a) the date of such breach or violation; or (b) the date of discovery of the facts (or the date the facts could have been discovered, using reasonable diligence) giving rise to such breach or violation?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
10.03 Exercise of Rights of Parties. The rights of Franchisor and Area Franchisee hereunder are cumulative and no exercise or enforcement by Franchisor or Area Franchisee of any right or remedy hereunder shall preclude the exercise or enforcement by Franchisor or Area Franchisee of any other right or remedy hereunder which Franchisor or Area Franchisee is entitled to enforce by law. If Area Franchisee commits any act of default under this Agreement for which Franchisor exercises its right to terminate this Agreement, Area Franchisee shall pay to Franchisor all actual, consequential, special and incidental damages Franchisor incurs as a result of the premature termination of this Agreement regardless of whether or not such damages are reasonably foreseeable. Area Franchisee acknowledges and agrees that the proximate cause of such damages sustained by Franchisor is Area Franchisee's act of default and not Franchisor's exercise of its right to terminate. Notwithstanding the foregoing, and except as otherwise prohibited or limited by applicable law, any failure, neglect, or delay of a party to assert any breach or violation of any legal or equitable right arising from or in connection with this Agreement, shall constitute a waiver of such right and shall preclude the exercise or enforcement of any legal or equitable remedy arising therefrom, unless written notice specifying such breach or violation is provided to the other party within 12 months after the later of: (a) the date of such breach or violation; or (b) the date of discovery of the facts (or the date the facts could have been discovered, using reasonable diligence) giving rise to such breach or violation.
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 the exercise of rights by both Checkers and the franchisee. Specifically, it states that a failure to assert a breach or violation of any right related to the agreement does not automatically prevent the enforcement of other rights or remedies. However, there is a condition where a delay in asserting a breach can be considered a waiver of that right.
According to the franchise agreement, if either party fails to promptly address a breach or violation, it could be seen as waiving their right to take action. To avoid this, the party must provide written notice specifying the breach or violation within 12 months of either the date of the breach or the date they discovered (or should have discovered with reasonable diligence) the facts giving rise to the breach. This means a Checkers franchisee needs to be vigilant in identifying and reporting any issues to protect their rights under the agreement.
This clause has significant implications for a Checkers franchisee. It emphasizes the importance of timely communication and documentation. If a franchisee overlooks a potential breach by Checkers and does not provide written notice within the specified timeframe, they may lose the ability to pursue legal or equitable remedies related to that breach. Therefore, franchisees must maintain careful records and seek legal advice when necessary to ensure they are aware of their rights and responsibilities under the franchise agreement.