factual

Does Checkers have liability if their decision applies differently to different franchisees?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

We and you acknowledge and agree that this Agreement (and the relationship of the parties which arises from this Agreement) grants us the right to make decisions, take actions and/or refrain from taking actions not inconsistent with your explicit rights and obligations hereunder that may affect favorably or adversely your interests. You understand and agree that we may operate and change the System and our business in any manner that is not expressly and specifically prohibited by this Agreement. Whenever we have reserved in this Agreement a right and/or discretion to take or withhold an action, or to grant or decline to grant you a right to take or withhold an action, except as otherwise expressly and specifically provided in this Agreement, we may make our decision or exercise our right and/or discretion on the basis of our judgment of what is in our best interests, including our judgment of what is in the best interests of our franchise network, at the time our decision is made, without regard to: (a) whether other reasonable or even arguably preferable alternative decisions or actions could have been made by us; (b) whether our decision or the action we take promotes our financial or other individual interest; (c) whether our decision or the action we take applies differently to you and one (1) or more other franchisees; or (d) whether our decision or the exercise of our rights is adverse to your individual interests or the individual interests of any other particular franchisees. We will have

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

What This Means (2025 FDD)

According to Checkers' 2025 Franchise Disclosure Document, Checkers retains the right to make decisions that may affect franchisees' interests, even if those decisions apply differently to individual franchisees. Checkers states that it may operate and change the System and its business in any manner that is not expressly and specifically prohibited by the Franchise Agreement.

Checkers reserves the right to take or withhold action, or to grant or decline to grant a right to take or withhold an action. Checkers may make its decision or exercise its right and/or discretion based on its judgment of what is in its best interests, including its judgment of what is in the best interests of its franchise network.

This discretion exists without regard to whether other reasonable or even arguably preferable alternative decisions or actions could have been made by Checkers; whether Checkers' decision or the action it takes promotes its financial or other individual interest; whether Checkers' decision or the action it takes applies differently to you and one (1) or more other franchisees; or whether Checkers' decision or the exercise of its rights is adverse to your individual interests or the individual interests of any other particular franchisees. Checkers states that it will have no liability to any franchisee for its decisions.

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.