Under what circumstances is a Checkers franchisee permitted to fail to actively operate the Franchised Restaurant for three consecutive days without penalty?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) abandon or fail to actively operate the Franchised Restaurant for three (3) consecutive days, except where such failure to actively operate results solely from events constituting force majeure;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, a franchisee can fail to actively operate their restaurant for three consecutive days without penalty only if the failure results solely from events constituting force majeure.
Force majeure typically refers to unforeseeable circumstances that prevent someone from fulfilling a contract. Common examples include natural disasters, war, or government regulations that make operation impossible. This clause protects the Checkers franchisee from being penalized for temporary closures caused by events outside their control.
It is important for a prospective Checkers franchisee to understand what specific events the franchise agreement defines as force majeure. This understanding will help the franchisee know when they are protected from penalties due to unforeseen closures and when they might be in breach of contract.