Does Checkers have any obligation to extend the Development Schedule under any circumstances?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
2.03 Development Obligations. You agree to exert your best efforts to fully develop the market potential for Restaurants in the Development Area. Without limiting the foregoing, you agree to open and operate in the Development Area, in accordance with and pursuant to Franchise Agreements, those cumulative numbers of Restaurants set forth in Section 3(a) of Exhibit A by the corresponding dates set forth therein and to achieve those cumulative numbers in accordance with the timelines set forth in Section 3(b) of Exhibit A (those dates and timelines collectively referred to herein as the "Development Schedule"). Time is of the essence in this Agreement, and we have no obligation under any circumstances to extend any of the dates or timelines in the Development Schedule.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, Checkers franchisees are expected to exert their best efforts to fully develop the market potential for restaurants in their designated Development Area. Franchisees must adhere to the specific timelines outlined in Exhibit A, Section 3(a) and 3(b) of the Development Agreement, which collectively form the "Development Schedule."
Time is considered of the essence in the Development Agreement. Checkers explicitly states that it has no obligation under any circumstances to extend any of the dates or timelines outlined in the Development Schedule. This means franchisees are held strictly accountable for meeting the agreed-upon milestones for opening and operating restaurants within their Development Area.
This strict adherence to the Development Schedule underscores the importance of careful planning and resource allocation for prospective Checkers franchisees. Franchisees should thoroughly assess their capabilities and market conditions before committing to the Development Schedule, as Checkers is not obligated to provide any extensions, regardless of unforeseen challenges or circumstances that may arise during the development process.