What does the Checkers franchisee agree to do regarding indemnification of the franchisor and its affiliates?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
officers, employees, agents, representatives and attorneys, and their respective successors and assigns, from any and all claims, demands and causes of action, whether known or unknown, of any kind or nature, absolute or contingent, if any at law or in equity, arising prior to or on the date you sign this Agreement, and (ii) agrees that none of them will institute any litigation or other legal action or proceeding, at law or in equity, against Franchisor or its affiliates and their directors, officers, employees, agents, representatives and attorneys, and their respective successors and assigns, directly or indirectly, relating to any claim or demand released under this Section 10.14. Area Franchisee shall take whatever actions are necessary or appropriate to carry out the terms of this release and covenant not to sue upon Franchisor's request. Notwithstanding the foregoing, nothing in this Agreement shall disclaim or require you to waive reliance on any representation we made in our Franchise Disclosure Document (including any of that document's exhibits and amendments) delivered to you, your Owners, Affiliates or representatives. This Section 10.14 shall survive the expiration or termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, a Checkers Area Franchisee agrees to release Checkers and its affiliates from claims and agrees to not institute litigation against Checkers or its affiliates. Specifically, Section 10.14 states that the Area Franchisee releases Checkers from any claims or causes of action known or unknown, arising prior to or on the date of signing the agreement. The franchisee also agrees not to initiate any legal action against Checkers or its affiliates regarding any claim released under this section. This release extends to Checkers' directors, officers, employees, agents, representatives, attorneys, and their successors and assigns.
This means that by signing the Area Franchise Agreement, the franchisee gives up the right to sue Checkers for any issues that occurred before or on the date the agreement is signed. However, this release does not require the franchisee to waive reliance on any representations made by Checkers in the Franchise Disclosure Document. This section of the agreement survives even after the agreement expires or is terminated.
In practical terms, a prospective Checkers franchisee should carefully review all aspects of the franchise offering and conduct thorough due diligence before signing the agreement. Any concerns or potential claims should be addressed before the agreement is finalized, as the franchisee will be giving up their right to sue for those issues once the agreement is signed. It is advisable to consult with an attorney to fully understand the implications of this release and covenant not to sue.