What is the scope of operational decisions that the Operating Partner of a Checkers franchise must be authorized to make?
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.
You (or your Operating Partner): (a) shall exert full-time, best efforts to the development and operation of the Franchised Restaurant and all other Restaurants you own; and (b) may not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or otherwise may conflict with your obligations hereunder.
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, they must designate an Operating Partner who meets specific requirements. This Operating Partner must be approved by Checkers and must own or have the right to own at least 10% of the equity and voting rights of the franchise entity.
Critically, the Operating Partner must have the authority to make and bind the franchisee and all owners to all operational decisions regarding the franchised restaurant. This means the Operating Partner has broad decision-making power over the day-to-day running of the Checkers location. The Operating Partner must also complete Checkers' training program to the franchisor's satisfaction before starting their operational duties.
The franchisee (or the Operating Partner) is also expected to exert full-time effort towards the development and operation of the franchised restaurant and cannot engage in other business activities that demand significant time or conflict with their obligations to Checkers. This ensures that the franchisee and/or Operating Partner are fully dedicated to the success of the Checkers franchise.