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What happens if a provision in the Checkers Franchise Agreement or Development Agreement is inconsistent with California Business and Professions Code Sections 20000 through 20043?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. The California Business and Professions Code Section 20000 through 20043 provide rights to the Franchisee concerning termination or non-renewal for a Franchise. If the Franchise Agreement or Development Agreement contain a provision that is inconsistent with the law, the law will control.

Source: Item 23 — RECEIPTS (FDD pages 92–384)

What This Means (2025 FDD)

According to Checkers's 2025 Franchise Disclosure Document, California Business and Professions Code Sections 20000 through 20043 provide franchisees with specific rights concerning franchise termination or non-renewal. If any provision within the Checkers Franchise Agreement or Development Agreement clashes with these sections of the California law, the law will take precedence. This means that the terms outlined in the California Business and Professions Code will override any conflicting terms in the franchise agreement.

For a prospective Checkers franchisee in California, this addendum offers a level of protection. It ensures that certain rights granted by California law cannot be undermined by the franchise agreement. This is particularly relevant concerning termination or non-renewal, which are critical aspects of the franchise relationship.

However, franchisees should not assume this addendum resolves all potential legal issues. It is crucial for prospective franchisees to consult with a legal professional to fully understand their rights and obligations under both the franchise agreement and California law. This will help ensure they are making an informed decision and are aware of any potential risks or benefits associated with investing in a Checkers franchise in California.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.