Under what condition related to individual capacity might Checkers waive the requirement that each Owner be an individual?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
"Owner" – Each person or entity that has a direct or indirect legal or beneficial ownership interest in you, if you are a business corporation, partnership, limited liability company or other legal entity.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
Based on the 2025 Checkers Franchise Disclosure Document, the excerpts provided do not specify any conditions under which Checkers might waive the requirement that each Owner be an individual. The definition of "Owner" includes both individuals and entities with ownership interests in the franchisee. However, the document does not detail circumstances where the individual capacity requirement may be waived.
While the FDD defines 'Owner' as each person or entity with a legal or beneficial ownership interest, it does not elaborate on potential exceptions to the individual requirement. This means that the standard expectation is for all owners, whether individuals or entities, to meet the general requirements for franchisees.
A prospective Checkers franchisee should directly ask the franchisor about any possible exceptions or waivers related to the individual capacity requirement for owners. Understanding the specific conditions, if any, under which Checkers might consider waiving this requirement is crucial for ensuring compliance and structuring their ownership appropriately.