Is Checkers liable to the franchisee for decisions made in the best interest of the franchise network?
Checkers Franchise · 2025 FDDAnswer 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 no liability to you for any such decision or exercise of our rights.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, Checkers is not liable to franchisees for decisions made in the best interest of the franchise network. The agreement specifies that Checkers has the right to make decisions and take actions that may affect a franchisee's interests, whether favorably or adversely.
Checkers may operate and change its business system in any manner not explicitly prohibited by the franchise agreement. When Checkers reserves the right to take or withhold action, it can base its decision on what it deems best for its interests, including the interests of its franchise network.
This decision-making process is not restricted by whether alternative decisions could have been made, whether the decision promotes Checkers' financial interests, whether the decision applies differently to franchisees, or whether the decision is adverse to a franchisee's individual interests. The franchise agreement explicitly states that Checkers will have no liability for any such decision or exercise of its rights.