How much in damages did Baby Buford, LLC seek from Checkers in their Demand for Arbitration?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
or the Southern District of Florida
Baby Buford, LLC, Baby Buford HP, LLC, Baby Buford Warren, LLC, Baby Buford 8 Mile, LLC, Baby Buford Southfield, LLC, Baby Buford 23 Mile Road, LLC, Baby Buford Livernois, LLC, Baby Buford Woodward, LLC, Baby Buford 14 Mile, LLC, Baby Buford Port Huron, LLC, Baby Buford Ypsilanti, LLC, Baby Buford Sylvan Lake, LLC, and Baby Buford Harper, LLC (collectively hereafter referred to as "Baby Buford") are former Checkers franchisees. On December 19, 2019, we terminated the franchise agreements based on failure
to pay required advertising contributions. On March 30, 2020, Baby Buford filed a single Demand for Arbitration against us seeking $299,999 in damages and alleging that (i) their franchise agreements had been wrongfully terminated in violation of the Michigan Franchise Investment Law, and (ii) we misappropriated and comingled advertising contributions made by Baby Buford. We deny any wrongdoing in this matter and all claims made by Baby Buford. On April 27, 2020, we filed a Petition to Compel Arbitration in Federal Court in which we asserted that the franchise agreements require a separate arbitration for each franchise entity. The Court agreed and, on January 6, 2021, the Court entered an Order staying the current arbitration and requiring separate arbitrations should Baby Buford wish to proceed. The claimants have taken no further action since the Court's January 6, 2021 order and do not appear to be actively pursuing their claims, although the arbitration action has not been withdrawn at this time.
Source: Item 3 — LITIGATION (FDD pages 15–17)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, Baby Buford, LLC, along with several affiliated entities, filed a Demand for Arbitration against Checkers on March 30, 2020, seeking $299,999 in damages. This demand alleged wrongful termination of their franchise agreements, citing violations of the Michigan Franchise Investment Law. Additionally, Baby Buford claimed that Checkers misappropriated and commingled advertising contributions made by the franchisee.
Checkers denied any wrongdoing and responded by filing a Petition to Compel Arbitration in Federal Court on April 27, 2020. Checkers argued that the franchise agreements required separate arbitrations for each franchise entity, rather than a single consolidated demand. The Court agreed with Checkers, and on January 6, 2021, issued an order staying the current arbitration and requiring separate arbitrations if Baby Buford wished to proceed with their claims.
As of the FDD's publication, the claimants have not taken further action since the Court's order in January 2021, and it appears they are not actively pursuing their claims. However, the arbitration action has not been formally withdrawn. This situation highlights the potential for disputes between Checkers and its franchisees, and the importance of understanding the terms of the franchise agreement regarding termination and dispute resolution.