What happens after Checkersrallys approves a site for the Premises?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon our approval of a site, we will insert the address into Exhibit B of the Franchise Agreement, and it will be the Premises. Within 60 days after our approval of a site for the Premises, you agree to deliver a copy of the fully signed lease, sublease or purchase contract and the franchise addendum to lease agreement. In some cases, we may sublease the Premises to you, but we do not typically do so.
You must apply for all requisite government approvals and permits to develop the Premises within 60 days after you sign the proposed lease, sublease or purchase agreement. You must complete construction or installation of the Franchised Restaurant within 180 days from receipt of all government approvals and permits. You must open the Franchised Restaurant within 14 days after the date construction or installation is completed, or, for those Restaurants that received training support from us, within 19 days after the date construction or installation is completed.
If, after expending good faith best efforts (as we determine in our sole judgment), you are unable to comply with the time periods required to either locate or secure a site for your Franchised Restaurant, or you are unable to obtain all required approvals and permits or timely complete construction of the Restaurant, then we may grant you a one-time extension in our sole discretion. If we grant you an extension, you must pay the extension fee as described in Item 6. If you are unable to locate or secure a site we approve for your Franchised Restaurant, we may terminate the Franchise Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, after Checkersrallys approves a site for the restaurant, the address of the approved site will be added to Exhibit B of the Franchise Agreement, officially designating it as the Premises. Within 60 days of this approval, the franchisee must provide Checkersrallys with a copy of the fully signed lease, sublease, or purchase contract, along with a franchise addendum to the lease agreement. While Checkersrallys may sublease the Premises to the franchisee in some instances, this is not typical.
Following the signing of the lease, sublease, or purchase agreement, the franchisee is required to apply for all necessary government approvals and permits to develop the Premises within 60 days. Construction or installation of the franchised restaurant must be completed within 180 days from the receipt of all government approvals and permits. The restaurant must then be opened within 14 days after construction or installation is finished, or within 19 days if the restaurant received training support from Checkersrallys.
Checkersrallys may grant a one-time extension if the franchisee, despite good faith efforts, cannot meet the deadlines for securing a site, obtaining necessary approvals and permits, or completing construction. However, this extension is at Checkersrallys's sole discretion, and an extension fee, as detailed in Item 6, will be required. If the franchisee is ultimately unable to secure an approved site, Checkersrallys reserves the right to terminate the Franchise Agreement.
These stipulations are fairly standard in the franchise industry, as franchisors need to maintain brand consistency and ensure timely openings. Franchisees should be aware of these deadlines and the potential consequences of not meeting them, including the risk of termination and associated financial losses.