What happens if a Checkersrallys franchisee fails to obtain advance approval for a substantial remodel?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Any substantial remodeling you perform pursuant to this Section must be approved by us in advance as conforming with our current prescribed plans, specifications and design model for new Restaurants. If you fail to obtain our advance approval of any substantial remodeling, and such remodeling does not conform to our current prescribed plans, specifications and design model for new Restaurants, we reserve the right to require you to perform such additional remodeling as may be required to conform the Franchised Restaurant to our current prescribed plans, specifications and design model for new Restaurants.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, if a franchisee undertakes a substantial remodel without obtaining advance approval from Checkersrallys, and the remodeling does not conform to the brand's current standards for new restaurants, Checkersrallys retains the right to demand that the franchisee perform additional remodeling to bring the restaurant into compliance with those standards. This ensures uniformity across all Checkersrallys locations and adherence to the brand's image.
This requirement for additional remodeling could result in unexpected costs for the franchisee. Franchisees are responsible for staying up-to-date with Checkersrallys's current prescribed plans, specifications, and design models for new restaurants to ensure any remodeling work aligns with these standards. This includes any modifications or adjustments Checkersrallys introduces for similarly-situated restaurants or incorporates into the system for all franchisees.
This provision underscores the importance of communication and adherence to Checkersrallys's guidelines. Franchisees should proactively seek approval for any substantial remodeling plans to avoid potential conflicts and additional expenses. Failing to do so could lead to a situation where the franchisee is forced to redo the remodeling work at their own cost, potentially impacting their profitability and operational efficiency.