What is the deadline for a Checkersrallys franchisee and their Owners to sign agreements and releases to avoid being deemed to have elected not to acquire a successor franchise?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, you and your Owners must execute general releases, in form and substance satisfactory to us or as we then explicitly prescribe, of any and all claims against us, and our Affiliates, owners, officers, directors, employees, agents, successors and assigns. Failure by you (and your Owners) to sign such agreements and releases within thirty (30) days after delivery to you shall be deemed an election by you not to acquire a successor franchise for the Franchised Restaurant. Upon expiration of such successor franchise agreement, you will have a further right on terms and conditions contained in the successor franchise agreement to acquire a future successor franchise as we then prescribe.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee and their owners have a limited time frame to sign the necessary agreements and releases if they wish to acquire a successor franchise. Specifically, if a Checkersrallys franchisee has the right to acquire a successor franchise and wants to exercise that right, both the franchisee and their owners must sign the franchise agreement and all related ancillary agreements, along with general releases.
The agreements and releases must be signed within thirty (30) days after they are delivered to the franchisee. If the franchisee and their owners fail to sign these documents within this 30-day period, it will be interpreted as an election not to acquire a successor franchise for the Checkersrallys restaurant.
This requirement is critical for franchisees who wish to continue operating their Checkersrallys restaurant beyond the initial franchise term. Failing to meet the 30-day deadline has significant implications, as it means the franchisee loses the opportunity to renew their franchise under the terms of a successor agreement. Prospective franchisees should be aware of this deadline and ensure they are prepared to act promptly upon receiving the necessary documents to avoid unintentionally forfeiting their right to a successor franchise.