Is a waiver granted by Checkers without prejudice to any other rights Checkers may have under the franchise agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
No disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship shall be construed or interpreted as waiving any claim of fraud in the inducement, whether common law or statutory, or as disclaiming reliance on or the right to rely upon any statement made or information provided by any franchisor, broker or other person acting on behalf of the franchisor that was a material inducement to a franchisee's investment. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
The 2025 Checkers Franchise Disclosure Document includes clauses related to waivers and releases, particularly concerning claims a franchisee might have against Checkers. In general, the FDD states that franchisees are releasing Checkers from any and all claims, known or unknown, that the franchisee has or may have against Checkers, arising from the Franchise Agreement or the relationship between the parties. This release includes a covenant not to sue Checkers on any of these released claims.
However, this broad release is subject to certain limitations. For example, the release does not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law, meaning that franchisees in Maryland retain their rights to sue Checkers for claims arising under that state's franchise law, despite the general release language.
Additionally, the FDD includes provisions to protect franchisees, specifically mentioning that no statement signed by a franchisee can be interpreted as waiving claims of fraud in the inducement. This means that if a franchisee believes they were fraudulently induced into signing the agreement based on misrepresentations by Checkers, they retain the right to pursue those claims, regardless of any waiver clauses. These stipulations are particularly relevant in Minnesota, where specific rules prevent franchisees from waiving certain rights or consenting to certain conditions, such as mandatory out-of-state litigation or limitations on legal remedies.