factual

Does the Checkers franchise agreement specify any prohibited actions regarding asserting breaches or violations, other than the 12-month deadline?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

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' 2025 Franchise Disclosure Document, a failure, neglect, or delay to assert any breach or violation of any legal or equitable right arising from the franchise agreement results in a waiver of that right. To avoid waiving their rights, a Checkers franchisee must provide written notice specifying the breach or violation within 12 months. The 12-month period starts from the later of the date of the breach or violation, or the date the facts were discovered or could have been discovered with reasonable diligence.

This stipulation means that Checkers franchisees need to be vigilant in identifying and reporting any potential breaches of the agreement. The requirement to act within 12 months of discovery puts the onus on the franchisee to maintain thorough records and seek legal advice promptly if they suspect a violation. This clause is fairly typical in franchise agreements, as it encourages timely resolution of disputes and prevents the accumulation of grievances over extended periods.

However, the clause is qualified by the phrase "except as otherwise prohibited or limited by applicable law." This acknowledges that certain state laws may override the contractual waiver provision, particularly concerning statutes of limitations or consumer protection laws. For example, the addendum for the state of Maryland notes that any limitations on the time arbitration or litigation claims must be brought shall not reduce the 3-year statute of limitations afforded to a franchisee for bringing a claim arising under the Maryland Franchise Registration and Disclosure Law. Checkers franchisees should consult with an attorney to understand how local laws might affect their rights and obligations under the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.