Is Checkers obligated for any damages arising out of the operation of the franchisee's business?

According to the 2025 Checkers Franchise Disclosure Document, Checkers will have no liability to the franchisee for any decision or exercise of its rights. As stated in section 5.01, "We will have no liability to you for any such decision or exercise of our rights."

Checkers and its franchisees are considered independent contractors, and the agreement does grant Checkers the right to make decisions that may affect the franchisee's interests, without creating liability for Checkers. This means Checkers can operate and change its business in any manner not expressly prohibited by the agreement, without being liable for adverse effects on individual franchisees.

However, this is qualified by the Maryland addendum, which states that any general releases signed by the franchisee will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. This suggests that in Maryland, there may be some circumstances where Checkers could be held liable for damages, depending on the specifics of Maryland law. Prospective franchisees should consult with a legal expert to fully understand their rights and obligations in their specific state.