When will Checkers notify a franchisee of their decision regarding the franchisee's right to acquire a successor franchise?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
15.02 Notices. You must give us written notice of your desire to acquire a successor franchise at least one hundred eighty (180) days prior to the expiration of this Agreement. We will give you notice, not later than sixty (60) days after receipt of your notice, of our decision whether or not you have the right to acquire a successor franchise pursuant to Section 15.01. Notwithstanding any notice of our decision that you have the right to acquire a successor franchise for the Franchised Restaurant, your right will be subject to your continued compliance with all the provisions of this Agreement up to the date of its expiration.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, a franchisee seeking to acquire a successor franchise must provide written notice to Checkers at least 180 days before the expiration of their current agreement. Following this notification, Checkers will then notify the franchisee of their decision regarding the successor franchise rights.
Checkers is obligated to inform the franchisee of their decision, whether or not the franchisee has the right to acquire a successor franchise, within 60 days after receiving the franchisee's initial notice. This timeline ensures the franchisee has adequate time to plan for the future of their restaurant, whether that involves renewing the franchise or preparing for the end of the agreement.
It's important to note that even if Checkers initially indicates that the franchisee has the right to a successor franchise, this right is contingent upon the franchisee's continued compliance with all terms and conditions of the existing franchise agreement up to its expiration date. This condition emphasizes the importance of maintaining operational standards and fulfilling all contractual obligations throughout the term of the franchise agreement.