What is the requirement for the Operating Partner of a Checkers franchise regarding the authority to bind the franchisee and all Owners to operational decisions?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.03 Operating Partner. If you are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, you must designate in Exhibit A as the "Operating Partner" an individual we approve who must: (a) own and control, or have the right to own and control (subject to conditions reasonably acceptable to us) not less than ten percent (10%) of your equity and voting rights; (b) have the authority to make, and bind you and all your Owners to, all operational decisions regarding the Franchised Restaurant; and (c) complete our training program to our satisfaction before engaging in his or her operational duties. You may not change the Operating Partner without our prior written consent.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, if the franchisee is a business entity, such as a corporation or LLC, they must designate an Operating Partner. This Operating Partner must have the authority to make all operational decisions regarding the franchised Checkers restaurant and must be able to legally bind the franchisee and all owners to those decisions.
In addition to having the authority to make operational decisions, the Operating Partner must also own and control, or have the right to own and control, at least 10% of the franchisee's equity and voting rights, subject to conditions reasonably acceptable to Checkers. The Operating Partner must also complete Checkers's training program to the franchisor's satisfaction before starting their operational duties.
Checkers must approve the designated Operating Partner, and the franchisee cannot change the Operating Partner without Checkers's prior written consent. This ensures that the person in charge of day-to-day operations meets Checkers's standards and has the necessary authority and training to run the restaurant effectively.