Under the Checkers franchise agreement, what is the timeframe for providing written notice of a breach or violation?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, and except as otherwise prohibited or limited by applicable law, any failure, neglect, or delay of a party to assert any breach or violation of any legal or equitable right arising from or in connection with this Agreement, shall constitute a waiver of such right and shall preclude the exercise or enforcement of any legal or equitable remedy arising therefrom, unless written notice specifying such breach or violation is provided to the other party within 12 months after the later of: (a) the date of such breach or violation; or (b) the date of discovery of the facts (or the date the facts could have been discovered, using reasonable diligence) giving rise to such breach or violation.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, both Checkers and the Area Franchisee have 12 months to provide written notice specifying a breach or violation of the agreement. This 12-month period begins either from the date of the breach or violation, or from the date the facts of the breach or violation were discovered, or could have been discovered with reasonable diligence, whichever is later.
This means that if either party fails to assert their rights concerning a breach within this timeframe, it will be considered a waiver of that right, preventing them from pursuing any legal or equitable remedy related to the breach. This clause encourages both Checkers and its franchisees to promptly address any issues or concerns related to the franchise agreement.
For a prospective Checkers franchisee, this highlights the importance of carefully monitoring all aspects of the franchise operation and maintaining open communication with Checkers. It is crucial to document any potential breaches or violations and to provide written notice within the specified timeframe to protect their rights under the franchise agreement. This also underscores the need for franchisees to conduct due diligence in understanding their obligations and rights as outlined in the agreement.