What are some examples of non-curable defaults that could lead to termination of the Checkersrallys Development Agreement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY | |
|---|---|---|---|
| e. | Termination by franchisor without cause | Not applicable | Not applicable |
| f. | Termination by franchisor with cause | Section 8 | We can terminate only for specified causes (if we terminate, we may also terminate any franchise agreements you have signed with us) |
| g. | "Cause" defined: curable defaults | Section 8.02 | 30 days to cure certain breaches of the Development Agreement. |
| h. | "Cause" defined non-curable defaults | Sections 8.01 and 8.02 | Includes insolvency; failure to meet development schedule; unauthorized transfer; misrepresentations; conviction of a felony; unauthorized disclosure of confidential information; any default by you under a franchise agreement; adverse franchise legislation. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 66–71)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, there are specific defaults related to the Development Agreement that cannot be cured, potentially leading to termination. These non-curable defaults, as outlined in Sections 8.01 and 8.02 of the Development Agreement, include situations such as insolvency, which indicates a developer's financial instability.
Another non-curable default is the failure to meet the development schedule, meaning not adhering to the agreed-upon timeline for opening new Checkersrallys locations. Unauthorized transfer of the Development Agreement, misrepresentations made to Checkersrallys, or a conviction of a felony can also trigger termination without an opportunity to correct the issue.
Further, unauthorized disclosure of confidential information and any default by the developer under a franchise agreement associated with Checkersrallys are considered non-curable defaults. Finally, adverse franchise legislation, which could negatively impact the agreement, is also listed as a non-curable default. These terms are important for prospective developers to understand, as any of these events could result in the immediate termination of their Development Agreement with Checkersrallys.