What are the Checkers franchise's rights regarding termination if a franchisee fails to open the franchised restaurant and start business?

According to Checkers' 2025 Franchise Disclosure Document, Checkers has the right to terminate the franchise agreement if the franchisee fails to open the franchised restaurant and start business as provided in Section 3.04 of the agreement. This means that if a franchisee does not fulfill their obligation to open and operate the restaurant according to the agreed-upon terms, Checkers can terminate the franchise agreement.

This provision protects Checkers by ensuring that franchisees promptly establish and operate their restaurants. Failure to do so can negatively impact the brand's reputation, market presence, and overall success. For a prospective franchisee, this highlights the importance of having a solid plan and the resources necessary to open the restaurant within the specified timeframe.

It is important for potential franchisees to carefully review Section 3.04 of the franchise agreement to fully understand the specific requirements and deadlines for opening the restaurant. Missing these deadlines can lead to termination of the agreement and loss of the franchise investment. Franchisees should also seek clarification from Checkers regarding any potential extensions or exceptions to this requirement.