What is the required prior notice Checkers must provide to revoke a waiver of obligation?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
18.02 Waiver of Obligations. We and you may by written instrument unilaterally waive or reduce any obligation of the other under this Agreement. Any waiver granted by us shall be without prejudice to any other rights we may have, will be subject to continuing review by us and may be revoked, in our sole discretion, at any time and for any reason, effective upon delivery to you of ten (10) days' prior notice. You and we shall not be deemed to have waived any right reserved by this Agreement by virtue of any custom or practice of the parties at variance with it; any failure, refusal or neglect by you or us to exercise any right under this Agreement (except as provided in Section 18.03) or to insist upon exact compliance by the other with its obligations hereunder; any waiver, forbearance, delay, failure or omission by us to exercise any right, whether of the same, similar or different nature, with respect to other Restaurants; or the acceptance by us of any payments due from you after any breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, Checkers can revoke a waiver of obligation that it previously granted to a franchisee. To do so, Checkers must provide the franchisee with ten (10) days' prior notice before the revocation becomes effective. This notice must be delivered to the franchisee.
This clause gives Checkers significant flexibility in managing the franchise agreement. It means that even if Checkers has previously waived or reduced a franchisee's obligation, it retains the right to reinstate that obligation with only a short notice period. This could impact a franchisee's operations and financial planning, as they must be prepared to comply with obligations that were previously waived.
Franchisees should carefully consider this provision, as it introduces an element of uncertainty into their business operations. While waivers may provide temporary relief, they are not permanent and can be revoked at Checkers's discretion with limited notice. A prospective franchisee should seek clarification from Checkers regarding the circumstances under which waivers are typically granted and revoked, and how this might affect their specific business situation.