factual

What happens upon Checkers' approval of a site for the Premises?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

ordance with our then current criteria for selection of a Checkers Restaurant or Rally's Restaurant site.

Before you acquire, by lease or purchase, any site for your Restaurant, you must submit a franchise site package to us in the form, content and substance as we then require. We will review each site package and determine whether to accept or reject the site after considering factors we deem appropriate, including the general location and neighborhood, demographic information, traffic patterns, access, visibility, location of other restaurants and food establishments, and size, configuration, appearance and other physical characteristics of the site. We will use reasonable efforts to approve or disapprove the proposed site within 30 days after receiving your written proposal. Upon our approval of a site, we will insert the address into Exhibit B of the Franchise Agreement, and it will be the Premises. Within 60 days after our approval of a site for the Premises, you agree to deliver a copy of the fully signed lease, sublease or purchase contract and the franchise addendum to lease agreement. In some cases, we may sublease the Premises to you, but we do not typically do so.

You must apply for all requisite government approvals and permits to develop the Premises within 60 days after you sign the proposed lease, sublease or purchase agreement. You must complete construction or installation of the Franchised Restaurant within 180 days from receipt of all government approvals and permits. You must open the Franchised Restaurant within 14 days after the date construction or installation is completed, or, for those Restaurants that received training support from us, within 19 days after the date construction or installation is completed.

If, after expending good faith best efforts (as we determine in our sole judgment), you are unable to comply with the time periods required to either locate or secure a site for your Franchised Restaurant, or you are unable to obtain all required approvals and permits or timely complete construction of the Restaurant, then we may grant you a one-time extension in our sole discretion. If we grant you an extension, you must pay the extension fee as described in Item 6. If you are unable to locate or secure a site we approve for your Franchised Restaurant, we may terminate the Franchise Agreement.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)

What This Means (2025 FDD)

According to Checkers' 2025 Franchise Disclosure Document, once Checkers approves a site for a restaurant, the address of the approved location is inserted into Exhibit B of the Franchise Agreement, officially designating it as the Premises. Within 60 days of this approval, the franchisee must provide Checkers with a copy of the fully signed lease, sublease, or purchase contract, along with a franchise addendum to the lease agreement. While Checkers may occasionally sublease the Premises to the franchisee, this is not the typical arrangement.

Within 60 days after signing the lease, sublease, or purchase agreement, the franchisee is required to apply for all necessary government approvals and permits to develop the Premises. The construction or installation of the franchised restaurant must be completed within 180 days from receiving all required government approvals and permits. Following completion of construction or installation, the restaurant must open within 14 days, or within 19 days for restaurants that received training support from Checkers.

If a franchisee faces difficulties in securing a site, obtaining necessary permits, or completing construction within the specified timeframes despite their best efforts, Checkers may, at its discretion, grant a one-time extension. However, this extension may require the franchisee to pay an extension fee as detailed in Item 6 of the FDD. If the franchisee is ultimately unable to secure an approved site, Checkers retains the right to terminate the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.