Does the Checkers FDD specify any deadlines related to the contract?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
curities would be required to be registered pursuant to the Securities Act of 1933, as amended, or such securities would be owned by more than 35 persons; or (2) after such issuance or sale, you or such Affiliate would be required to comply with the reporting and information requirements of the Securities Exchange Act of 1934, as amended.
14. TERMINATION OF AGREEMENT.
14.01 Immediate Termination. You are in material breach of this Agreement, and this Agreement will automatically terminate without notice, at our discretion, if you become insolvent by reason of your inability to pay your debts as they mature; if you are adjudicated bankrupt or insolvent; if you file a petition in bankruptcy, reorganization or similar proceedings under the bankruptcy laws of the United States or have such a petition filed against you which is not discharged within thirty (30) days; if a receiver or other custodian, permanent or temporary, is appointed for your business, assets, property; if you request the appointment of a receiver or make a general assignment for the benefit of creditors; if final judgment against you in the amount of Twenty-Five Thousand Dollars ($25,000) or more remains unsatisfied of record for thirty (30) days or longer; if your bank accounts, property or accounts receivable are attached; if execution is levied against your business or property; if suit is filed to foreclose any lien or mortgage against any of your assets and such suit is not dismissed within thirty (30) days; if you voluntarily dissolve or liquidate or have a petition filed for corporate or partnership dissolution and such petition is not dismissed within thirty (30) days; or if your assets, property or interests are "blocked" under any law or regulation relating to terrorist activities or if you are otherwise in violation of any such law or regulation.
14.02 Termination Upon Notice. In addition to our right to terminate pursuant to other provisions of this Agreement and under applicable law, we have the right to terminate this Agreement, effective upon delivery of notice of termination to you, if you or any of your Owners or Affiliates:
- (a) fail to locate, and submit for our approval, an acceptable site for the Premises, as provided in Section 3.02;
- (b) fail to sign a lease, sublease or purchase contract for the Premises, as provided in Section 3.03;
- (c) fail to open the Franchised Restaurant and start business, as provided in Section 3.04;
- (d) abandon or fail to actively operate the Franchised Restaurant for three (3) consecutive days, except where such failure to actively operate results solely from events constituting force majeure;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, the franchise agreement can be terminated under certain conditions, some of which involve specific deadlines. If a franchisee faces financial difficulties such as being unable to pay debts, being adjudicated bankrupt or insolvent, or filing for bankruptcy, Checkers has the discretion to immediately terminate the agreement without notice. However, if a petition is filed against the franchisee, they have 30 days to discharge it.
Additionally, Checkers can terminate the agreement if a final judgment against the franchisee of $25,000 or more remains unsatisfied for 30 days or longer. Similarly, if a suit is filed to foreclose any lien or mortgage against the franchisee's assets, the franchisee has 30 days to dismiss the suit. If the franchisee voluntarily dissolves or liquidates, or if a petition is filed for corporate or partnership dissolution, the franchisee has 30 days to dismiss the petition.
Upon termination or expiration of the franchise agreement, the franchisee has specific obligations. Within 30 days after the effective date of termination or expiration, the franchisee must furnish Checkers with evidence of compliance with obligations such as ceasing use of confidential information and discontinuing any internet communications related to the franchised restaurant. Furthermore, for a period of two years following the termination or expiration, the franchisee is restricted from engaging in any Competitive Business within a specified radius of Checkers restaurants.