What is the requirement for the Operating Partner of a Checkers franchise regarding engaging in operational duties after completing the training program?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
A (which will replace its predecessor version of Exhibit A) if we approve the change. Each person who is or becomes an Owner must execute an agreement in form and substance as we then prescribe, undertaking to be bound jointly and severally by this Agreement. Each Owner must be an individual acting in his individual capacity, unless we waive this requirement.
- 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' 2025 Franchise Disclosure Document, if the franchisee is a business entity, they must designate an Operating Partner who meets specific requirements. The Operating Partner must be approved by Checkers and must own/control at least 10% of the franchisee's equity and voting rights, or have the right to own and control it subject to conditions acceptable to Checkers.
Furthermore, the Operating Partner must have the authority to make operational decisions and bind the franchisee to those decisions. Critically, the Operating Partner must complete Checkers' training program to Checkers' satisfaction before engaging in any operational duties. This ensures that the Operating Partner is adequately prepared to manage the restaurant according to Checkers' standards.
In addition to completing the training program, the Operating Partner is expected to exert full-time, best efforts to the development and operation of the franchised Checkers restaurant, as well as any other Checkers restaurants the franchisee owns. The Operating Partner also cannot engage in any other business or activity that requires substantial management responsibility or time commitments that might conflict with their obligations to Checkers. This highlights Checkers' expectation that the Operating Partner will be fully dedicated to the success of the Checkers franchise.