Does the Checkers franchise agreement specify that Checkers will not be obligated for damages arising out of the operation of the franchisee's business?

According to the 2025 Checkers Franchise Disclosure Document, Checkers aims to limit its liability for certain damages. Specifically, the franchise agreement states that, to the fullest extent permitted by law, both Checkers and the franchisee waive any right to punitive or exemplary damages against each other, except in cases where the franchisee is obligated to indemnify Checkers for third-party claims or concerning confidential information.

Furthermore, the franchisee and their owners waive the right to recover consequential, special, and incidental damages for any claim arising from or related to the franchise agreement. This means that franchisees may be limited in their ability to claim certain types of damages beyond direct losses.

However, it's important to note that these limitations on damages may not be enforceable in all jurisdictions, particularly concerning franchise laws. For example, the FDD includes addenda for Maryland and Virginia, which may provide additional protections or limitations that supersede the general terms of the franchise agreement. Prospective franchisees should carefully review these state-specific addenda and consult with legal counsel to understand the full scope of their rights and obligations.