What happens if a Checkers franchisee breaches another agreement with Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
10.03 Exercise of Rights of Parties. The rights of Franchisor and Area Franchisee hereunder are cumulative and no exercise or enforcement by Franchisor or Area Franchisee of any right or remedy hereunder shall preclude the exercise or enforcement by Franchisor or Area Franchisee of any other right or remedy hereunder which Franchisor or Area Franchisee is entitled to enforce by law. If Area Franchisee commits any act of default under this Agreement for which Franchisor exercises its right to terminate this Agreement, Area Franchisee shall pay to Franchisor all actual, consequential, special and incidental damages Franchisor incurs as a result of the premature termination of this Agreement regardless of whether or not such damages are reasonably foreseeable. Area Franchisee acknowledges and agrees that the proximate cause of such damages sustained by Franchisor is Area Franchisee's act of default and not Franchisor's exercise of its right to terminate. 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.
10.04 Costs of Enforcement. If we file a claim in a judicial or arbitration proceeding for amounts you or any of your Owners owe us or any of our Affiliates, or if we enforce this Agreement in a judicial or arbitration proceeding, and we prevail in any such proceeding, you agree to reimburse us for all of our costs and expenses, including reasonable accounting, paralegal, expert witness and attorneys' fees. If we are required to engage legal counsel in connection with your failure to comply with this Agreement, you must reimburse us for any attorneys' fees, costs and expenses we incur.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, if an Area Franchisee commits an act of default under the agreement, Checkers has the right to terminate the agreement. In the event of termination, the Area Franchisee is responsible for paying Checkers all actual, consequential, special, and incidental damages incurred as a result of the premature termination, regardless of foreseeability. The Area Franchisee acknowledges that their act of default is the direct cause of these damages.
Checkers' rights and remedies are cumulative, meaning the exercise of one right or remedy does not prevent Checkers from enforcing any other right or remedy available by law. However, any failure, neglect, or delay by Checkers to assert a breach or violation of any legal or equitable right arising from the agreement constitutes a waiver of that right, unless written notice specifying the breach or violation is provided to the other party within 12 months of the breach or discovery of the facts.
Additionally, if Checkers files a claim in a judicial or arbitration proceeding for amounts owed by the franchisee or to enforce the agreement and prevails, the franchisee must reimburse Checkers for all costs and expenses, including reasonable accounting, paralegal, expert witness, and attorneys' fees. If Checkers is required to engage legal counsel due to the franchisee's failure to comply with the agreement, the franchisee must also reimburse Checkers for any attorneys' fees, costs, and expenses incurred.