Can Checkers terminate the agreement if a new regulation adversely affects their franchising rights?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) if we determine that any applicable federal or state legislation, regulation or rule, which is enacted, promulgated or amended after the Effective Date, may have an adverse effect on our rights, remedies or discretion in franchising Restaurants.
We have no obligation whatsoever to refund any portion of the development fee upon any termination, except that we will refund the unapplied portion of the development fee paid pursuant to Section 2.01 in the event of a termination pursuant to Section 8.02(g).
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers has the right to terminate the franchise agreement if a new or amended federal or state legislation, regulation, or rule may have an adverse effect on their rights, remedies, or discretion in franchising restaurants.
This means that if a law or regulation changes after the franchise agreement is signed, and Checkers believes that this change negatively impacts their ability to franchise restaurants, they can terminate the agreement. This clause protects Checkers from being bound by agreements that become unfavorable due to legal changes.
However, Checkers will refund the unapplied portion of the development fee paid pursuant to Section 2.01 in the event of a termination pursuant to Section 8.02(g).