When the Checkers franchise agreement is terminated or expires without renewal, how long do I have to pay all outstanding royalties, NPF contributions, purchase amounts, and other debts to Checkers and its Affiliates?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Within thirty (30) days after the effective date of termination or expiration (without renewal) of this Agreement, you must pay us and our Affiliates all royalties, NPF contributions, amounts owed for purchases from us or our Affiliates, interest due on any of the foregoing and all other amounts owed to us or our Affiliates which are then unpaid.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if the franchise agreement is terminated or expires without renewal, a franchisee has 30 days to pay all outstanding debts to Checkers and its affiliates. These debts include royalties, NPF (National Promotion Fund) contributions, amounts owed for purchases from Checkers or its affiliates, interest due on any of these amounts, and any other unpaid amounts.
This requirement ensures that Checkers receives all outstanding payments promptly after the termination or expiration of the franchise agreement. It is a standard practice in franchising to require franchisees to settle all financial obligations upon the end of the agreement.
Failure to pay these amounts within the specified timeframe could result in further legal action or penalties. Therefore, it is crucial for a franchisee to understand and plan for this financial obligation when considering the termination or non-renewal of their Checkers franchise agreement.