What actions by a Checkers franchisee related to the lease or sublease of the Franchised Restaurant can lead to termination?

According to Checkers' 2025 Franchise Disclosure Document, there are several actions related to the lease or sublease of the franchised restaurant that can lead to the termination of the franchise agreement. Specifically, failing to sign a lease, sublease, or purchase contract for the premises as outlined in Section 3.03 can result in termination. Additionally, if the lease or sublease for the franchised restaurant is canceled or terminated, this can also lead to the termination of the franchise agreement.

These stipulations are significant for prospective Checkers franchisees as they highlight the importance of securing and maintaining a valid lease or sublease for the restaurant location. Failure to do so can have severe consequences, including the loss of the franchise. This underscores the need for franchisees to carefully review and adhere to all requirements related to site selection and lease agreements as specified by Checkers.

It is common practice in the franchise industry for franchisors to include provisions that protect their brand and ensure consistent operations. Maintaining control over the restaurant location through lease requirements is one way Checkers ensures that franchisees meet their obligations and uphold the brand's standards. Franchisees should seek legal counsel to fully understand the terms and conditions of the franchise agreement and any related lease agreements.