For Checkers franchises, what is required of the Operating Partner before engaging in operational duties?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.03 Operating Partner. If you are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, you must designate in Exhibit A as the "Operating Partner" an individual we approve who must: (a) own and control, or have the right to own and control (subject to conditions reasonably acceptable to us) not less than ten percent (10%) of your equity and voting rights; (b) have the authority to make, and bind you and all your Owners to, all operational decisions regarding the Franchised Restaurant; and (c) complete our training program to our satisfaction before engaging in his or her operational duties. You may not change the Operating Partner without our prior written consent.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if a franchisee is a business entity, they must designate an Operating Partner. Before this Operating Partner can engage in operational duties for the Checkers franchise, they must complete Checkers' training program to the franchisor's satisfaction.
Additionally, the Operating Partner must meet certain criteria. They must own and control, or have the right to own and control, at least 10% of the equity and voting rights of the franchise. They also need to have the authority to make operational decisions and bind the franchisee and all owners to those decisions.
This requirement ensures that the Operating Partner is adequately prepared to manage the Checkers restaurant and is committed to the success of the franchise. It also gives Checkers some control over who is managing the restaurant and ensures that the person in charge has sufficient knowledge and authority.