How long does a Checkers franchisee have to cure a failure to pay the franchisor?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY | |
|---|---|---|---|
| g. | "Cause" defined: defaults which can be cured | Section 14.02 | You have 24 hours to cure health violation, 10 days to cure failure to pay us and 30 days to cure any other breaches of the Franchise 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' 2025 Franchise Disclosure Document, a franchisee has a limited time to correct a failure to pay the amounts they owe to Checkers. Specifically, Checkers offers a 10-day cure period for such payment defaults. This means that if a franchisee fails to make a required payment, Checkers will provide written notice, and the franchisee then has 10 days from the date of the notice to make the payment and resolve the default. If the franchisee does not pay within this timeframe, Checkers has grounds to terminate the franchise agreement.
This 10-day cure period is relatively short compared to cure periods for other types of defaults under the franchise agreement. For instance, the FDD states that Checkers franchisees have 30 days to cure other breaches of the Franchise Agreement. The brevity of the cure period for payment defaults underscores the importance Checkers places on timely payments from its franchisees.
Prospective Checkers franchisees should be aware of this short cure period and ensure they have systems in place to manage their finances and make timely payments to Checkers. Failure to do so could result in the termination of their franchise agreement. Franchisees should also note that repeated breaches of the Franchise Agreement, including payment defaults, can be considered non-curable defaults, which could lead to immediate termination without an opportunity to cure.