Following the expiration or termination of the franchise agreement, do the arbitration provisions in Section 18.05 remain in effect for Checkersrallys?

According to Checkersrallys's 2025 Franchise Disclosure Document, the arbitration provisions outlined in Section 18.05 remain in full effect even after the franchise agreement expires or is terminated. This means that any disputes arising between Checkersrallys and a franchisee, even after the agreement has ended, will still be subject to arbitration as described in that section.

This continuation of the arbitration agreement is significant for prospective franchisees because it dictates how disputes will be resolved, potentially years after the franchise relationship has ended. Franchisees need to understand that they are agreeing to resolve certain disputes through arbitration rather than through the court system, even after the franchise agreement is no longer active. This could include disputes related to post-termination obligations, such as non-compete clauses or confidentiality agreements.

The arbitration process, as governed by the United States Federal Arbitration Act, will be managed by the American Arbitration Association (AAA) located closest to Checkersrallys's corporate headquarters. The arbitrator's decision will be binding, and judgment upon the award may be entered in any court of competent jurisdiction. This ensures that both Checkersrallys and the franchisee are bound by the arbitrator's decision, providing a final resolution to the dispute.

Checkersrallys also retains the right to advance the franchisee's share of arbitration costs to facilitate the proceedings, without waiving their right to seek recovery of these amounts from the franchisee through the arbitrator's final award. This clause ensures that arbitration can proceed without financial barriers, while still allowing Checkersrallys to recoup costs if the arbitrator deems it appropriate. Franchisees should carefully consider the implications of this clause, as they may ultimately be responsible for these costs if the arbitrator rules against them.