If assignment of a lease is prohibited, what alternative arrangement must the Checkers franchisee provide to Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
he Premises provided by Tenant. All notices to Franchisor shall be sent to the following address: Checkers Drive-In Franchised Restaurants, Inc., 4300 West Cypress Street, Suite 600, Tampa, Florida 33607, Attn: Legal Department, unless Landlord is notified otherwise in writing by Franchisor. No notice to Tenant shall be effective unless and until a copy thereof is served upon Franchisor.
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- Landlord agrees that if Franchisor exercises its right to cure a default by Tenant and/or another lessee under the Lease, then Franchisor may, at its option, succeed to Tenant's and/or such other lessee's interests under the Lease and
shall be recognized by Landlord as the lessee or sublessee thereunder for the remaining term of the Lease.
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- Landlord agrees that the expiration of the Franchise Agreement (unless Tenant enters into a renewal Franchise Agreement with Franchisor) or a termination of the Franchise Agreement prior to expiration shall constitute a default under the Lease, giving Franchisor the right, but not the obligation, to cure such default by succeeding to Tenant's and/or any other lessee's interests as the new lessee or sublessee under the Lease.
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- Landlord agrees that upon the termination or expiration of the Lease, Franchisor shall have the first right of refusal to lease the Premises as the new lessee or sublessee.
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- Landlord agrees that Franchisor shall have the right to enter the Premises to make any modifications or alterations necessary in Franchisor's sole discretion to protect its franchise system, trademarks, trade names, trade dress and other intellectual property without being guilty of trespass or any other tort or crime.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
Based on the 2025 Checkers Franchise Disclosure Document, the agreement between the Landlord and Tenant states that if Checkers exercises its right to cure a default by the Tenant, Checkers may succeed to the Tenant's interests under the Lease. The Landlord will recognize Checkers as the lessee or sublessee for the remaining term of the Lease.
Furthermore, the Landlord agrees that the expiration or termination of the Franchise Agreement will constitute a default under the Lease, giving Checkers the right, but not the obligation, to cure such default by succeeding to the Tenant's interests as the new lessee or sublessee under the Lease. The Landlord also agrees that upon the termination or expiration of the Lease, Checkers has the first right of refusal to lease the Premises as the new lessee or sublessee.
Additionally, if Checkers succeeds to the Tenant's interests under the Lease, Checkers has the right to further assign the lease or sublease the Premises to an entity owned or controlled by Checkers, or to another Checkers franchisee, provided the Landlord's written consent is obtained, which cannot be unreasonably withheld, conditioned, or delayed. No assignment permitted under this section is subject to any assignment or similar fee or will cause any rental acceleration.