Could pending litigation have a material impact on Checkers' consolidated results of operations in any particular annual period?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
From time to time, we are involved in legal proceedings arising in the ordinary course of business relating to matters including, but not limited to, disputes with franchisees, suppliers, employees (including pursuant to employment discrimination and wage and hour laws) and customers, as well as disputes over intellectual property. We do not expect the outcome of pending litigation to have a material impact on our business or consolidated financial position, although it may have a material impact on our consolidated results of operations in any particular annual period.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers states that it is involved in legal proceedings that arise in the ordinary course of business. These proceedings can include disputes with franchisees, suppliers, employees, and customers, and can also involve disputes over intellectual property.
Checkers does not anticipate that the outcome of any pending litigation will have a material impact on its overall business or consolidated financial position. However, the FDD notes that pending litigation could potentially have a material impact on Checkers' consolidated results of operations in any particular annual period.
This statement suggests that while Checkers does not expect major disruptions from current lawsuits, franchisees should be aware that legal issues could, in some year, affect the company's financial performance. This could have implications for franchisee support, marketing, or other services if Checkers' profitability is impacted.