Upon termination or expiration of the Lease, what right does Checkers have regarding leasing the Premises?

According to the 2025 Checkers Franchise Disclosure Document, upon the termination or expiration of the lease, Checkers maintains the first right of refusal to lease the premises as the new lessee or sublessee. This stipulation is part of an agreement that Checkers requires its tenants (franchisees) to include in their lease agreements with landlords, designed to protect Checkers's interests.

This right of first refusal is a significant advantage for Checkers, as it allows them to maintain control over the location of a franchise even if the franchisee's lease expires or is terminated. This can be particularly important in high-traffic or otherwise desirable locations. It ensures that Checkers can continue operating a restaurant at that location, either directly or through another franchisee, without competition from other businesses.

Furthermore, the lease agreement stipulates that the landlord must furnish Checkers with a copy of any default notice served on the tenant, provide notice of any proposed lease renewals, extensions, modifications, and amendments, and give Checkers the opportunity to cure any default by the tenant. This level of involvement ensures that Checkers is well-informed and has the ability to protect its interests related to the leased premises. The landlord also agrees that Checkers has the right to enter the premises to make modifications to protect its franchise system and trademarks.