Does Checkers have to renew a franchise on terms generally available to other franchisees?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the following provisions is void and unenforceable if contained in any documents relating to a franchise:
- (e) A provision that permits the franchisor to refuse to renew a franchise on terms generally available to other franchisees of the same class or type under similar circumstances. This section does not require a renewal provision.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Michigan prohibits franchise agreements from allowing Checkers to refuse franchise renewal on terms generally available to other franchisees of the same class or type under similar circumstances. However, this does not require a renewal provision.
This addendum ensures that Checkers franchisees in Michigan are offered renewal terms that are consistent with what other franchisees of similar standing receive. This provision aims to prevent Checkers from unfairly disadvantaging a franchisee during the renewal process by offering less favorable terms compared to their peers.
It is important to note that while Checkers must offer similar terms, the document explicitly states that this section does not mandate a renewal provision. Therefore, Checkers is not obligated to renew the franchise agreement at all, but if they choose to offer a renewal, the terms must be generally available to other franchisees of the same class or type under similar circumstances.