What is the required action a Checkers franchisee must take after receiving written notice of failing to accurately report Net Sales to avoid default?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- (l) fail to report accurately Net Sales or to make payment of any amounts due us or any of our Affiliates, and do not correct such failure within ten (10) days after written notice of such failure is delivered to you;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if a Checkers franchisee fails to accurately report Net Sales or make required payments to Checkers or its affiliates, they must correct this failure within ten days after receiving written notice to avoid defaulting on the franchise agreement.
This requirement means that Checkers franchisees must maintain accurate sales records and promptly address any discrepancies identified by Checkers. The franchisee has a short window of ten days to rectify the situation once notified, which underscores the importance of diligent financial management and responsiveness to franchisor communications.
Failure to correct the issue within the specified timeframe can lead to default, potentially resulting in termination of the franchise agreement. This clause protects Checkers by ensuring accurate financial reporting and timely payments, which are crucial for the franchisor's revenue and overall system integrity.