What were the two options Checkers was required to provide to class members as part of the settlement agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
iss both Complaints with prejudice. On August 25, 2021 the Court entered an Order approving the settlement, which requires us to (i) reimburse each class member up to $5,000 for documented out-of-pocket expenses, or (ii) provide $20 in restaurant vouchers to each class member without documented out-of-pocket expenses. In accordance with that Order, notice of the settlement was subsequent
Source: Item 3 — LITIGATION (FDD pages 15–17)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the company was involved in concluded litigation related to data security breaches. As part of the settlement agreement approved by the court on August 25, 2021, Checkers was required to provide two options to class members affected by the data breaches.
First, Checkers had to reimburse each class member up to $5,000 for documented out-of-pocket expenses incurred as a result of the data breach. This option required class members to provide proof of their losses. Alternatively, for those class members who did not have documented out-of-pocket expenses, Checkers was required to provide $20 in restaurant vouchers to each class member.
This settlement indicates the potential costs and liabilities Checkers can face related to data security and customer information protection. For a prospective franchisee, this highlights the importance of adhering to data security protocols and investing in systems to prevent data breaches, as the financial repercussions can be significant, including settlement costs and damage to the brand's reputation.