factual

According to the agreement, are Checkersrallys franchisees or their employees considered employees of Checkersrallys?

Checkersrallys Franchise · 2025 FDD

Answer from 2025 FDD Document

17. RELATIONSHIP OF THE PARTIES.

17.01 Independent Contractors.

Neither this Agreement nor the dealings of the parties pursuant to this Agreement shall create any fiduciary relationship or any other relationship of trust or confidence between the parties hereto. Franchisor and Franchisee, as between themselves, are and shall be independent contractors.

We and you acknowledge and agree that this Agreement (and the relationship of the parties which arises from this Agreement) grants us the right to make decisions, take actions and/or refrain from taking actions not inconsistent with your explicit rights and obligations hereunder that may affect favorably or adversely your interests. You understand and agree that we may operate and change the System and our business in any manner that is not expressly and specifically prohibited by this Agreement. Whenever we have reserved in this Agreement a right and/or discretion to take or withhold an action, or to grant or decline to grant you a right to take or withhold an action, except as otherwise expressly and specifically provided in this Agreement, we may make our decision or exercise our right and/or discretion on the basis of our judgment of what is in our best interests, including our judgment of what is in the best interests of our franchise network, at the time our decision is made, without regard to: (a) whether other reasonable or even arguably preferable alternative decisions or actions could have been made by us; (b) whether our decision or the action we take promotes our financial or other individual interest; (c) whether our decision or the action we take applies differently to you and one (1) or more other franchisees; or (d) whether our decision or the exercise of our rights is adverse to your individual interests or the individual interests of any other particular franchisees. We will have no liability to you for any such decision or exercise of our rights.

Nothing contained in this Agreement, or arising from the conduct of the parties hereunder, is intended to make either party a general or special agent, joint venturer, partner or employee of the other for any purpose whatsoever. You must conspicuously identify yourself in all dealings with customers, lessors, contractors, suppliers, public officials, employees and others as the owner of the Franchised Restaurant and must place such other notices of independent ownership on such forms, business cards, stationery, advertising and other materials as we may require at any time and from time to time.

You may not make any express or implied agreements, warranties, guarantees or representations or incur any debt in our name or on our behalf or represent that the relationship of the parties hereto is anything other than that of independent contractors. We will not be obligated by or have any lia

Source: Item 22 — CONTRACTS (FDD pages 91–92)

What This Means (2025 FDD)

According to Checkersrallys's 2025 Franchise Disclosure Document, the agreement explicitly states that franchisees are independent contractors and not employees of Checkersrallys. This distinction is crucial as it defines the legal and financial relationship between Checkersrallys and its franchisees.

The agreement specifies that neither the agreement itself nor the dealings between the parties should create any fiduciary relationship or any relationship of trust or confidence. Checkersrallys and the franchisee are considered independent contractors, meaning franchisees operate their businesses autonomously.

This independence extends to how franchisees represent themselves in their business dealings. Franchisees must clearly identify themselves as the owners of their franchised restaurant in all interactions with customers, lessors, contractors, suppliers, public officials, employees, and others. They must also include notices of independent ownership on forms, business cards, stationery, advertising, and other materials as required by Checkersrallys. This reinforces that franchisees are separate business entities and not agents or employees of Checkersrallys. Checkersrallys will not be obligated by or have any liability because the franchisee is an independent contractor.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.