Is a Checkers franchisee allowed to make agreements or incur debt in the franchisor's name?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing contained in this Agreement, or arising from the conduct of the parties hereunder, is intended to make either party a general or special agent, joint venturer, partner or employee of the other for any purpose whatsoever. You must conspicuously identify yourself in all dealings with customers, lessors, contractors, suppliers, public officials, employees and others as the owner of the Franchised Restaurant and must place such other notices of independent ownership on such forms, business cards, stationery, advertising and other materials as we may require at any time and from time to time.
You may not make any express or implied agreements, warranties, guarantees or representations or incur any debt in our name or on our behalf or represent that the relationship of the parties hereto is anything other than that of independent contractors. We will not be obligated by or have any liability under any agreements made by you with any third party or for any representations made by you to any
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from making agreements or incurring debt in Checkers's name. The franchise agreement specifies that franchisees must conduct business as independent contractors and clearly identify themselves as the owners of their franchised restaurant in all dealings with customers, lessors, contractors, suppliers, public officials, and employees. This includes placing notices of independent ownership on business cards, stationery, advertising, and other materials as required by Checkers.
This provision ensures that Checkers is not held liable for any agreements, warranties, guarantees, or representations made by the franchisee, or for any debts the franchisee incurs. It also clarifies that the relationship between Checkers and its franchisees is strictly that of independent contractors, preventing any implication of a general or special agency, joint venture, partnership, or employment relationship.
For a prospective Checkers franchisee, this means they are solely responsible for all financial obligations and representations related to their restaurant. They cannot represent themselves as an agent of Checkers or create any impression that Checkers is responsible for their business dealings. This independence carries both benefits and risks, as the franchisee has autonomy in their business operations but also bears full financial responsibility.