Under what conditions might Checkers grant a one-time extension to the franchisee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If, after expending good faith best efforts (as we determine in our sole judgment), you are unable to comply with the time periods required to either locate or secure a site for your Franchised Restaurant, or you are unable to obtain all required approvals and permits or timely complete construction of the Restaurant, then we may grant you a one-time extension in our sole discretion. If we grant you an extension, you must pay the extension fee as described in Item 6. If you are unable to locate or secure a site we approve for your Franchised Restaurant, we may terminate the Franchise Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, a one-time extension may be granted if the franchisee, after demonstrating good faith and best efforts (as determined solely by Checkers), faces challenges in meeting the stipulated timeframes for securing a site, obtaining necessary approvals and permits, or completing restaurant construction. This extension is not guaranteed and is at Checkers's sole discretion.
If Checkers grants an extension, the franchisee must pay an extension fee, the amount of which is detailed in Item 6 of the FDD. However, if the franchisee fails to secure an approved site, Checkers retains the right to terminate the Franchise Agreement.
This clause highlights the importance of diligent effort and proactive communication with Checkers throughout the site selection, permitting, and construction phases. Franchisees should be aware of the potential for additional costs in the form of extension fees and the ultimate risk of termination if site acquisition proves unsuccessful.