What are the specific obligations of a Checkers franchisee regarding the training of their employees, considering both Item 8 and Item 9?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| OBLIGATION | SECTION IN AGREEMENT | DISCLOSURE DOCUMENT ITEM |
|---|---|---|
| d. Initial and ongoing | Section 4 of the Franchise | Item 11 |
| training | Agreement | |
| g. Compliance with Standards and Policies/Operations manuals | Sections 4.03 and 9 of the Franchise Agreement | Items 8 and 11 |
If you are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, you must designate as the "Operating Partner" an individual approved by us who must: (a) own and control, or have the right to own and control (subject to conditions reasonably acceptable to us), not less than 10% of your equity and voting rights; (b) have the authority to bind you regarding all operational decisions with respect to your Franchised Restaurant; and (c) have completed our training program to our satisfaction. You may not change the Operating Partner without our prior written consent.
You (or your Operating Partner): (a) shall exert your full-time and best efforts to the development and operation of your 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 under the Franchise Agreement. Your Franchised Restaurant at all times must be managed by you (or your Operating Partner) or by a manager who has completed our training program to our satisfaction.
The Franchised Restaurant at all times must be under the direct, on-premises supervision of you (or your Operating Partner), or otherwise a manager-level employee other than you (or your Operating Partner) that you appoint and authorize to conduct day-to-day business activities at the Franchised Restaurant, either of whom must (a) have sufficient experience (in our sole opinion) in the operation of a quick service restaurant; and (b) have successfully completed our initial training program to our satisfaction. Your Operating Partner will be required to sign our Nondisclosure and Non-Competition Agreement, but we do not require manager-level employees to sign our Nondisclosure and Non-Competition Agreement. Your manager-level employee is not required to own equity in you.
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, franchisees have several obligations pertaining to the training of their employees. Item 9 outlines franchisee obligations, referencing sections within the Franchise Agreement and other items within the FDD that cover initial and ongoing training requirements. Specifically, Section 4 of the Franchise Agreement and Item 11 detail these training obligations. Compliance with standards and policies, as well as operations manuals, are also franchisee obligations, as noted in Sections 4.03 and 9 of the Franchise Agreement and Items 8 and 11 of the FDD.
If the franchisee is a business entity, they must designate an Operating Partner who Checkers approves. This Operating Partner must own or have the right to control at least 10% of the equity and voting rights, have the authority to make operational decisions, and have completed Checkers's training program to Checkers's satisfaction. The franchisee (or their Operating Partner) must devote their full-time efforts to the restaurant and cannot engage in other conflicting business activities.
The franchised restaurant must always be managed by the franchisee (or the Operating Partner) or by a manager who has completed Checkers's training program. The restaurant must be under the direct, on-premises supervision of the franchisee (or the Operating Partner) or a manager-level employee who has sufficient experience in quick service restaurants and has successfully completed the initial training program. While the Operating Partner must sign a Nondisclosure and Non-Competition Agreement, manager-level employees are not required to do so, nor are they required to own equity in the franchisee's business.