What was the maximum amount Checkers was required to reimburse each class member for documented out-of-pocket expenses?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
iss both Complaints with prejudice. On August 25, 2021 the Court entered an Order approving the settlement, which requires us to (i) reimburse each class member up to $5,000 for documented out-of-pocket expenses, or (ii) provide $20 in restaurant vouchers to each class member without documented out-of-pocket expenses. In accordance with that Order, notice of the settlement was subsequent
Source: Item 3 — LITIGATION (FDD pages 15–17)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the company was involved in concluded litigation related to data security breaches. As part of the settlement approved on August 25, 2021, Checkers was required to provide compensation to affected class members.
Specifically, Checkers had to reimburse each class member up to $5,000 for documented out-of-pocket expenses resulting from the data breaches. Alternatively, for class members without documented out-of-pocket expenses, Checkers provided $20 in restaurant vouchers. This settlement aimed to address claims of negligence and failure to protect customer data, providing a means of restitution for those affected.
For a prospective Checkers franchisee, this litigation highlights the importance of data security and the potential costs associated with data breaches. While this specific case is concluded, it underscores the need for franchisees to invest in robust security measures to protect customer information and avoid similar legal issues. Franchisees should inquire about Checkers' current data security protocols and support systems to mitigate these risks.