If Checkersrallys agrees to sublease the premises to a franchisee, who is the Checkersrallys franchisee required to pay rent to?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
If we agree to sublease the Premises to you, you are required to pay the rent under the sublease to the landlord of the Premises, along with the related occupancy costs, which include property taxes, insurance, maintenance and structural repairs. We derive revenue from this subleasing arrangement, as detailed in Item 6.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if Checkersrallys agrees to sublease the premises to a franchisee, the franchisee is required to pay rent to the landlord of the premises. This payment includes not only the rent but also related occupancy costs such as property taxes, insurance, maintenance, and structural repairs.
This arrangement means that while Checkersrallys acts as an intermediary by subleasing the property, the financial obligation of the franchisee is directly to the landlord. Checkersrallys derives revenue from this subleasing arrangement, as detailed in Item 6 of the FDD.
Prospective franchisees should be aware of these obligations and factor in these occupancy costs when evaluating the financial viability of a Checkersrallys franchise. Understanding the terms of the sublease agreement, including the specific amounts and due dates for rent and occupancy costs, is crucial for managing the franchise's finances effectively.