If Checkersrallys exercises its right to cure a default by the Tenant under the Lease, what rights does Checkersrallys have?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
tion of any applicable cure period if Tenant and/or such other lessee fail to cure such default; and (d) to furnish to Franchisor, at Franchisor's request, a copy of any sales or operating information for the Premises provided by Tenant. All notices to Franchisor shall be sent to the following address: Checkers Drive-In Franchised Restaurants, Inc., 4300 West Cypress Street, Suite 600, Tampa, Florida 33607, Attn: Legal Department, unless Landlord is notified otherwise in writing by Franchisor. No notice to Tenant shall be effective unless and until a copy thereof is served upon Franchisor.
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- Landlord agrees that if Franchisor exercises its right to cure a default by Tenant and/or another lessee under the Lease, then Franchisor may, at its option, succeed to Tenant's and/or such other lessee's interests under the Lease and
shall be recognized by Landlord as the lessee or sublessee thereunder for the remaining term of the Lease.
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- Landlord agrees that the expiration of the Franchise Agreement (unless Tenant enters into a renewal Franchise Agreement with Franchisor) or a termination of the Franchise Agreement prior to expiration shall constitute a default under the Lease, giving Franchisor the right, but not the obligation, to cure such default by succeeding to Tenant's and/or any other lessee's interests as the new lessee or sublessee under the Lease.
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- Landlord agrees that upon the termination or expiration of the Lease, Franchisor shall have the first right of refusal to lease the Premises as the new lessee or sublessee.
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- Landlord agrees that Franchisor shall have the right to enter the Premises to make any modifications or alterations necessary in Franchisor's sole discretion to protect its franchise system, trademarks, trade names, trade dress and other intellectual property without being guilty of trespass or any other tort or crime.
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- Landlord agrees that upon the expiration or termination of the Franchise Agreement, Franchisor shall have the right to enter the Premises and remove any trade fixtures, interior or exterior signs or other items bearing its trademarks.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if Checkersrallys exercises its right to cure a default by the tenant under the lease, Checkersrallys has the option to succeed to the tenant's interests under the lease. If Checkersrallys chooses to do so, the landlord must recognize Checkersrallys as the lessee or sublessee for the remaining term of the lease.
Additionally, the expiration or termination of the Franchise Agreement also gives Checkersrallys the right, but not the obligation, to cure a default by succeeding to the tenant's interests as the new lessee or sublessee under the lease. Checkersrallys also has the first right of refusal to lease the premises as the new lessee or sublessee upon the termination or expiration of the lease.
Furthermore, upon electing to exercise its rights under the addendum, Checkersrallys is entitled to all of the tenant's rights and interests in the lease, as if Checkersrallys were the tenant. This includes the right to exercise any and all renewal options without any further action or instrument. If Checkersrallys succeeds to the tenant's interests, Checkersrallys has the right to further assign the lease or sublease the premises to an entity owned or controlled by Checkersrallys, or to another Checkersrallys franchisee, provided the landlord's written consent is obtained, which cannot be unreasonably withheld, conditioned, or delayed. No assignment is subject to any assignment or similar fee or will cause any rental acceleration.