How does Checkersrallys define a 'Monthly Period' for the purposes of the franchise agreement, including the start date and potential variations in length?

According to Checkersrallys's 2025 Franchise Disclosure Document, a 'Monthly Period' is defined as a period of two consecutive 'Bi-weekly Periods' that approximates a calendar month. Each bi-weekly period consists of two weeks, starting on a Tuesday and continuing through the second Monday thereafter. The franchisor, Checkersrallys, may change this schedule. The first bi-weekly period of any fiscal year begins on the first day of Checkersrallys's fiscal year, regardless of the day of the week. Currently, this is the Tuesday closest to December 31st.

For Checkersrallys franchisees, this means that 'Monthly Periods' do not perfectly align with calendar months but are based on groupings of these bi-weekly periods. The start date of the first bi-weekly period in a 'Monthly Period' is the Tuesday closest to the first day of a calendar month. This definition is important because Checkersrallys uses these periods for reporting and accounting purposes, as specified elsewhere in the agreement.

It's important to note that the thirteenth 'Monthly Period' in any fiscal year for Checkersrallys may be longer than the typical 28 days, potentially encompassing more days to align with the fiscal year's end. Franchisees should be aware of these defined periods to ensure accurate reporting and compliance with the franchise agreement. Understanding these definitions is crucial for managing financial reporting and understanding obligations to Checkersrallys.