If Checkers elects to require a lease for the Restaurant Location after termination or expiration, what is the deadline for Checkers to provide written notice of this election to the franchisee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) If we elect to require you to execute and deliver to us or our designee a lease for the Restaurant Location, we shall deliver written notice to you within ten (10) days after the effective date of termination or expiration of this Agreement of such election. Following such notice, you and we shall negotiate in good faith a lease for the Real Estate containing commercially reasonable terms with a term equal to a minimum of the remaining Term under this Agreement. If you and we have not agreed to a lease within thirty (30) days after your receipt of our election, we shall engage a Real Estate Appraiser to prepare a lease with commercially reasonable terms. The Real Estate Appraiser's determination will be binding, and you must
execute and deliver to us a lease for the Restaurant Location containing the commercially reasonable terms provided by the Real Estate Appraiser. All fees, compensation and cost and expense reimbursements of the Real Estate Appraiser shall be borne equally by the parties. Upon your execution of the lease for the Restaurant Location, you agree to vacate the Restaurant Location promptly and completely, rendering all necessary assistance to us to enable us to take prompt possession.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if Checkers decides to require a franchisee to execute a lease for the restaurant location after the franchise agreement terminates or expires, Checkers must provide written notice of this election to the franchisee within ten (10) days after the effective date of the termination or expiration.
Following this notice, the franchisee and Checkers are expected to negotiate a lease in good faith, ensuring the terms are commercially reasonable. The lease term should be a minimum of the remaining term under the original franchise agreement. If both parties cannot agree on lease terms within thirty (30) days of the franchisee receiving Checkers' election notice, a Real Estate Appraiser will be engaged to prepare a lease with commercially reasonable terms.
The Real Estate Appraiser's determination will be binding, and the franchisee is obligated to execute and deliver a lease based on those terms. The costs associated with the Real Estate Appraiser will be equally shared between Checkers and the franchisee. After executing the lease, the franchisee must promptly vacate the restaurant location and provide any necessary assistance to allow Checkers to take possession.