Are the rights of Checkers and the franchisee cumulative under the franchise agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
18.03 Exercise of Rights. The rights of Franchisor and Franchisee hereunder are cumulative and no exercise or enforcement by Franchisor or Franchisee of any right or remedy hereunder shall preclude the exercise or enforcement by Franchisor or Franchisee of any other right or remedy hereunder which Franchisor or Franchisee is entitled to enforce by law. If Franchisee commits any act of default under this Agreement for which Franchisor exercises its right to terminate this Agreement, Franchisee shall pay to Franchisor all actual, consequential, special and incidental damages Franchisor incurs as a result of the premature termination of this Agreement regardless of whether or not such damages are reasonably foreseeable. Franchisee acknowledges and agrees that the proximate cause of such damages sustained by Franchisor is Franchisee's act of default and not Franchisor's exercise of its right to terminate. Notwithstanding the foregoing, and except as otherwise prohibited or limited by applicable law, any failure, neglect, or delay of a party to assert any breach or violation of any legal or equitable right
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the rights of both Checkers as the franchisor and the franchisee are cumulative. This means that if either party exercises or enforces any right or remedy under the franchise agreement, it does not prevent them from also exercising or enforcing any other right or remedy they are entitled to by law.
This provision ensures that Checkers and its franchisees retain all available legal options and protections. For a franchisee, this could mean that Checkers's decision to pursue one course of action in response to a breach does not limit their ability to pursue other remedies simultaneously or in the future.
The franchise agreement also specifies that if a franchisee defaults and Checkers terminates the agreement, the franchisee is responsible for all actual, consequential, special, and incidental damages Checkers incurs due to the early termination, regardless of foreseeability. The agreement clarifies that the franchisee's default, not Checkers's termination, is the cause of these damages. However, any failure or delay by either party to assert a breach of any legal or equitable right does not constitute a waiver of that right, except as otherwise prohibited or limited by law.