Under what circumstances can Checkers terminate the agreement due to changes in federal or state legislation?

According to Checkers' 2025 Franchise Disclosure Document, Checkers can terminate the franchise agreement if new or amended federal or state legislation, regulations, or rules have an adverse effect on Checkers' rights, remedies, or discretion in franchising restaurants.

This means that if laws change in a way that makes it more difficult or costly for Checkers to operate its franchise system, Checkers has the right to terminate the agreement. This clause protects Checkers from being bound to an agreement that becomes unfavorable due to legal changes.

For a prospective franchisee, this clause introduces an element of risk. If new laws significantly alter the franchising landscape, your franchise agreement could be terminated, even if you are otherwise in compliance. It is important to stay informed about potential legislative changes that could affect the franchise and to understand how these changes might impact Checkers' willingness to continue the franchise agreement. Franchisees should seek legal counsel to fully understand their rights and obligations under such circumstances.