What happens if the lease for a Checkers franchised restaurant is cancelled or terminated?

According to Checkers' 2025 Franchise Disclosure Document, the cancellation or termination of the lease or sublease for the franchised restaurant can lead to termination of the franchise agreement. Specifically, if a Checkers franchisee suffers cancellation or termination of their lease, it constitutes an event of default under the franchise agreement.

However, Checkers also has certain rights to protect its interests in the event of a lease default. The landlord must furnish Checkers with a copy of any default notice served on the tenant (the franchisee) and provide Checkers with notice of any proposed lease renewals, extensions, modifications, and amendments. Checkers has the opportunity, but not the obligation, to cure any default by the franchisee within 15 days following the expiration of any applicable cure period. If Checkers chooses to cure the default, it has the option to succeed to the franchisee's interests under the lease for the remaining term.

Furthermore, if the franchisee owns the real estate upon termination of the franchise agreement, Checkers has the option to require the franchisee to execute a lease for the restaurant location. Checkers must deliver written notice of this election within ten days after the termination date. Both parties will then negotiate a lease with commercially reasonable terms, with a minimum term equal to the remaining term under the original franchise agreement. If an agreement cannot be reached within thirty days, a Real Estate Appraiser will determine the lease terms, which will be binding, and the franchisee must execute the lease and vacate the premises.