If I request an extension of time to obtain governmental approvals and permits or complete construction for my Checkersrallys franchise, what is the nonrefundable extension fee?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
y other federal, state or local law or ordinance regulating standards for access to, use of, or modifications of buildings by or for any persons whose disabilities are protected by law) or that the construction thereof is sound or free from defects. All prototype plans and other plans and specifications for the Franchised Restaurant shall be our sole and exclusive property.
You must apply for all requisite government approvals and permits to develop the Premises within sixty (60) days after your execution of the proposed lease, sublease or purchase agreement for the Premises. You must complete construction or installation of the Franchised Restaurant within one hundred eighty (180) days from receipt of all government approvals and permits. You must open the Franchised Restaurant within fourteen (14) days after the date construction or installation is completed, or, if the Franchised Restaurant receives training support from us, within nineteen 19 days after construction or installation is completed. We must approve the Franchised Restaurant for opening. If, after expending good faith best efforts (as we determine in our sole judgment), you are unable to obtain all requisite approvals and permits or complete construction of the Franchised Restaurant within the prescribed time periods under this paragraph, and we did not previously grant you
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee may request an extension of time to obtain governmental approvals and permits or complete construction. This is only if the franchisee has expended good faith best efforts to obtain the approvals and permits or complete construction within the prescribed time periods. Checkersrallys will determine, in its sole judgment, whether the franchisee has used their best efforts.
If Checkersrallys grants the extension, the franchisee must pay a nonrefundable extension fee of $5,000. This fee is a condition for Checkersrallys granting the extension.
This means that if a Checkersrallys franchisee encounters delays in obtaining necessary approvals or completing construction, they can request more time, but it will cost them $5,000, and Checkersrallys has the discretion to deny the extension even if the fee is paid. This fee does not guarantee the extension will be granted, and the franchisee will not get the $5,000 back whether the extension is granted or not.