Does the Checkers franchise agreement specify any prohibited actions regarding asserting breaches or violations?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
sequential, 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. Franchisee acknowledges and agrees that the proximate cause of such damages sustained by Franchisor is 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 twelve (12) months after the later of: (a) the date of such breach or violation;
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, a failure, neglect, or delay to assert any breach or violation of any legal or equitable right arising from or in connection with the agreement, will constitute a waiver of such right. This precludes the exercise or enforcement of any legal or equitable remedy unless written notice specifying such breach or violation is provided to the other party within 12 months. The 12 months is calculated after the later of the date of such breach or violation, or 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.
This means a Checkers franchisee must be diligent in identifying and reporting any potential breaches of the franchise agreement. Failure to do so within the specified timeframe could result in losing the right to take legal action regarding the breach. This clause encourages franchisees to actively monitor their relationship with Checkers and promptly address any concerns.
However, the addendum to the Checkers Franchise Disclosure Document for the state of Maryland states that any general releases signed will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. This means that the standard release and covenant not to sue may have limitations in Maryland, offering franchisees some additional protection under state law.