Is a Checkersrallys franchisee allowed to modify the terms of the lease, sublease, purchase contract, or franchise addendum to lease agreement without approval from Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
taurant within the prescribed time period under this Section, then you may request an extension of time to locate an acceptable site within the Designated Area, which we may grant to you in our sole discretion. If we grant you such an extension, you must pay us a nonrefundable extension fee of Five Thousand Dollars ($5,000) as a condition to our granting such extension.
3.03 Purchase or Lease of Premises.We have the right to approve the terms of any lease, sublease or purchase contract for the Premises. You agree to sign, and have the landlord sign, the franchise addendum to lease agreement attached hereto as Exhibit C, containing certain required terms and provisions of the lease or sublease. Within sixty (60) days after our approval of a site for the Premises, you must deliver to us a copy of the fully signed lease, sublease or purchase contract and the franchise addendum to lease agreement. You may not modify the terms of the lease, sublease, purchase contract or franchise addendum to lease agreement without our approval. Our approval of the lease, sublease or purchase contract does not constitute a warranty or representation of any kind, express or implied, as to its fairness or suitability or as to your ability to comply with its terms. We do not, by virtue of approving the lease, sublease or purchase contact, assume any liability or responsibility to you or to any third parties. If, after expending good faith best efforts (as we determine in our sole judgment), you are unable to execute the lease, sublease or purchase agreement for the Premises within the prescribed time period under this Section, and we d
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee is not allowed to modify the terms of the lease, sublease, purchase contract, or franchise addendum to lease agreement without prior approval from Checkersrallys. Checkersrallys retains the right to approve the terms of any lease, sublease, or purchase contract for the premises.
As part of the leasing process, the franchisee must ensure that the landlord signs the franchise addendum to lease agreement, which is attached as an exhibit to the FDD. Within 60 days of Checkersrallys's approval of the site, the franchisee must provide a copy of the fully signed lease, sublease, or purchase contract, along with the franchise addendum to lease agreement.
This requirement ensures that Checkersrallys maintains control over the location and operational aspects of its franchises. It also allows Checkersrallys to protect its interests and ensure that the lease terms align with its standards and requirements. Obtaining approval before modifying any lease-related documents is crucial for a Checkersrallys franchisee to remain in compliance with the franchise agreement.