What is the length of the franchise term under the Checkers Development Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY | |
|---|---|---|---|
| a. | Length of the franchise term | Section 2.01 | Mutually agreed upon |
| b. | Renewal or extension of the term | Section 2.01 | No renewal |
| c. | Requirements for developer to renew or extend | Section 2.01 | You have no right to renew or extend your rights under this Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 66–71)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the length of the franchise term under the Development Agreement is determined by mutual agreement between Checkers and the franchisee, as detailed in Section 2.01 of the agreement. This means that the specific duration of the agreement is not fixed but is negotiated on a case-by-case basis.
This approach offers both flexibility and potential uncertainty for prospective franchisees. The mutually agreed-upon term could be tailored to the franchisee's development plans and investment strategy. However, it also means that the franchisee's desired term might not be guaranteed and could be subject to Checkers's approval.
Furthermore, the FDD states that there is no option for renewal or extension of the Development Agreement. This lack of renewal option emphasizes the importance of carefully considering the initial term and development schedule, as franchisees will not have a contractual right to continue their development rights beyond the initial term. Prospective franchisees should discuss the typical term lengths Checkers grants and the factors influencing the term's determination during their due diligence.