What is the deadline for a Checkersrallys franchisee to open the Franchised Restaurant after signing the Franchise Agreement, according to the addendum?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. If, at any time during the Term, you breach, fail to satisfy, or are later found to have violated or failed to satisfy, any of the criteria listed in Section 2 above, including without limitation your obligation to open the Franchised Restaurant within one (1) year of signing the Franchise Agreement, then in addition to any other remedies available under the Franchise Agreement or at applicable law, you must pay us (no later than thirty (30) days after our written notice to you) the amount of the Initial Fee Reduction.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, specifically the addendum to the franchise agreement, a franchisee generally has one year from the date of signing the Franchise Agreement to open their Franchised Restaurant. This requirement is outlined as a qualification that the franchisee agrees to meet.
Failure to open the restaurant within this one-year timeframe can result in financial repercussions for the Checkersrallys franchisee. If the franchisee does not meet this obligation, they may be required to pay back any reduction in the initial franchise fee that was granted as an incentive. This repayment would be due no later than 30 days after receiving written notice from Checkersrallys.
This condition underscores the importance of timely development and opening of the franchise. Prospective Checkersrallys franchisees should carefully consider their ability to meet this deadline, taking into account factors such as site selection, construction, and training. Understanding these requirements is crucial for maintaining good standing with Checkersrallys and avoiding potential financial penalties.