What must a Checkers franchisee do with computer software licensed by Checkers or its affiliates upon termination or expiration of the franchise agreement?

According to Checkers's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must immediately cease using all computer software licensed by Checkers or its affiliates. Furthermore, the franchisee must comply with all obligations outlined in any software license agreements. This requirement ensures that the franchisee no longer utilizes Checkers's proprietary software after the agreement ends.

This provision is standard in franchise agreements to protect the franchisor's intellectual property and operational systems. By requiring the franchisee to stop using the software and adhere to the software license agreements, Checkers maintains control over its technology and prevents unauthorized use. This is particularly important for maintaining consistency and protecting trade secrets across the Checkers system.

For a prospective Checkers franchisee, this means understanding the terms of the software license agreements and being prepared to transition to alternative systems upon termination or expiration of the franchise agreement. It is crucial to have a plan in place to ensure business continuity without relying on Checkers's licensed software. Franchisees should clarify with Checkers what specific actions are required to demonstrate compliance with these obligations, such as providing evidence of software removal or data deletion.