Does the Checkers franchise agreement specify that the rights of the franchisor and franchisee are cumulative?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
18.03 Exercise of Rights. The rights of Franchisor and Franchisee hereunder are cumulative and no exercise or enforcement by Franchisor or Franchisee of any right or remedy hereunder shall preclude the exercise or enforcement by Franchisor or Franchisee of any other right or remedy hereunder which Franchisor or Franchisee is entitled to enforce by law. If Franchisee commits any act of default under this Agreement for which Franchisor exercises its right to terminate this Agreement, 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. 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
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, the rights of both the franchisor and franchisee are indeed cumulative. This means that if either party exercises one right or remedy, it does not prevent them from using any other rights or remedies they are entitled to under the agreement or by law.
This provision is beneficial for both Checkers and its franchisees because it ensures that all available legal avenues remain open to them. For example, if Checkers waives a franchisee's obligation once, it doesn't automatically waive that obligation in the future. Checkers can revoke the waiver with ten days' notice. Similarly, if a franchisee fails to meet certain obligations, Checkers's decision to initially overlook the breach does not prevent them from enforcing that obligation later on.
Furthermore, if a franchisee defaults and Checkers terminates the agreement, the franchisee is liable for all damages Checkers incurs due to the early termination, regardless of foreseeability. The franchisee acknowledges that their default, not Checkers's termination, is the cause of these damages. This clause reinforces Checkers's ability to protect its interests fully.
However, the agreement also notes an exception: any failure to assert a legal or equitable right does not constitute a waiver, unless otherwise prohibited or limited by applicable law. This acknowledges that certain legal restrictions might override the cumulative rights provision, ensuring compliance with relevant regulations.