What is Checkers prohibited from disclaiming or denying under California's Franchise Investment Law?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
California's Franchise Investment Law (Corporations Code sections 31512 and 31512.1) states that any provision of a franchise agreement or related document requiring the franchisee to waive specific provisions of the law is contrary to public policy and is void and unenforceable.
The law also prohibits a franchisor from disclaiming or denying (i) representations it, its employees, or its agents make to you, (ii) your ability to rely on any representations it makes to you, or (iii) any violations of the law.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, California's Franchise Investment Law prohibits Checkers from disclaiming or denying certain things. Specifically, Checkers cannot disclaim or deny representations made by the company, its employees, or its agents to the franchisee.
Furthermore, Checkers cannot deny a franchisee's ability to rely on any representations made by Checkers. Finally, Checkers is prohibited from disclaiming or denying any violations of the law.
This protection ensures that Checkers franchisees in California can hold the franchisor accountable for the statements and promises made during the franchise sales process. It also prevents Checkers from avoiding liability for violating franchise laws.