Must a waiver granted by Checkers be in writing according to the franchise agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Any general releases you sign will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. (See Exhibit K to the Franchise Disclosure Document for the form of general release that we currently intend to use in connection with franchise transfers and renewals.)
Any limitation on the period of time arbitration and/or litigation claims must be brought shall not act to reduce the 3 year statute of limitations afforded a franchisee for bringing a claim arising under the Maryland Franchise Registration and Disclosure Law.
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
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
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
The 2025 Checkers Franchise Disclosure Document includes information about releases and waivers, particularly concerning the Maryland Franchise Registration and Disclosure Law. It specifies that any general releases signed by the franchisee will not apply if prohibited by Maryland law. Additionally, any claims arising under this law must be brought within three years after the franchise grant. The document also states that no clause shall be interpreted as waiving any claim of fraud in the inducement. However, the FDD does not explicitly state whether a waiver granted by Checkers must be in writing. A prospective franchisee should clarify with Checkers whether waivers must be in writing to ensure enforceability and to understand their rights fully.
In general franchise agreements, it is typical for waivers or modifications to be required in writing to avoid ambiguity and ensure both parties are clear on the terms. This protects both the franchisee and franchisor by providing a clear record of any agreed-upon changes or waivers. Without a written requirement, disputes can arise over whether a waiver was actually granted and what its specific terms were.
Given the absence of a specific clause in the provided FDD excerpts, it is important for a potential Checkers franchisee to seek clarification from the franchisor regarding the enforceability and requirements for waivers. Understanding whether waivers must be in writing, and the implications of such waivers, is crucial for protecting the franchisee's interests and ensuring compliance with the franchise agreement.