Does the Checkers franchise agreement specify that 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?
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' 2025 Franchise Disclosure Document, the franchise agreement states that the rights of both Checkers (the franchisor) and the Area Franchisee are cumulative. This means that if either party chooses to exercise or enforce any right or remedy under the agreement, it does not prevent them from exercising or enforcing any other rights or remedies they are entitled to by law.
This provision ensures that Checkers and its Area Franchisees retain all available legal options and protections. For example, if Checkers takes action on one breach of contract by an Area Franchisee, it doesn't forfeit its right to act on other breaches, or pursue other legal remedies simultaneously. This protects Checkers' interests and ensures comprehensive enforcement of the franchise agreement.
For a prospective Area Franchisee, this clause highlights the importance of understanding all obligations and potential liabilities under the agreement. It means Checkers has multiple avenues for recourse if the franchisee fails to comply with the agreement. Franchisees should seek legal counsel to fully understand the implications of this clause and ensure they can meet all contractual obligations.