What is the duration of the franchise term for a Checkers restaurant, starting from the Effective Date?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
2.01 Grant of Franchise. You have applied for a franchise to own and operate a Restaurant at a location we approve, which will be identified on Exhibit B (the "Premises"). Subject to the terms of this Agreement, we grant to you the right, and you assume the obligation, to operate a Restaurant at the Premises and to use the System solely in connection therewith, for a term of twenty (20) years, starting on the Effective Date (the "Term"). You may not conduct the business of the Franchised Restaurant or use the System at any site other than the Premises, or relocate the Franchised Restaurant, without our prior consent. The Franchised Restaurant may not be used for any purpose other than the operation of a Restaurant in compliance with this Agreement. You may conduct business only with customers at the Franchised Restaurant and may not engage in any catering or delivery businesses without or prior consent which may be withheld for any reason.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the franchise agreement grants the franchisee the right and obligation to operate a Checkers restaurant at an approved location for a term of twenty (20) years, beginning on the Effective Date. The franchisee is restricted to operating the restaurant and using the Checkers system solely at the approved premises. Relocation or conducting business outside the premises requires prior consent from Checkers.
This twenty-year term is a standard duration for many franchise agreements in the restaurant industry, providing franchisees with a substantial period to establish and grow their business. The "Effective Date" is defined as the date the franchise agreement is signed by Checkers.
At the end of the initial term, Checkers offers an opportunity to acquire a successor franchise agreement for an additional term of either ten or twenty years, subject to certain conditions, including executing a new franchise agreement and general releases. The successor agreement may contain terms, including royalty fees, that differ from the original agreement. The franchisee must notify Checkers of their desire to acquire a successor franchise at least 180 days prior to the expiration of the current agreement.