Does the Checkers franchise agreement specify that 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?
Checkers Franchise · 2025 FDDAnswer 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, the franchise agreement addresses the timeframe for providing written notice of a breach or violation. Specifically, it states that a party's failure to assert a breach or violation of any legal or equitable right related to the agreement will be considered a waiver of that right.
However, this waiver is conditional. To avoid waiving their rights, the party must provide written notice specifying the breach or violation to the other party within 12 months. This 12-month period begins from the later of two dates: either the date the breach or violation occurred, or the date the facts giving rise to the breach or violation were discovered (or could have been discovered with reasonable diligence).
This clause means that Checkers franchisees and the franchisor must be vigilant in identifying and addressing potential breaches of the franchise agreement. If a party waits longer than 12 months after discovering a breach to provide written notice, they risk losing their right to take action on that breach. This provision encourages timely communication and resolution of issues, which is a common practice in franchise agreements to maintain a healthy business relationship and protect the interests of both parties.