If a Checkersrallys restaurant is damaged, within how many days must the franchisee initiate repairs or reconstruction?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Franchised Restaurant is damaged or destroyed by fire or other casualty, then you must initiate within thirty (30) days (and continue using best efforts until completion) all repairs or reconstruction to restore the Franchised Restaurant to its original condition. If, in our reasonable judgment, the damage or destruction is of such a nature that it is feasible, without incurring substantial additional costs, to repair or reconstruct the Franchised Restaurant in accordance with our then current layout and decor specifications for new Restaurants, we may require you to repair or reconstruct the Franchised Restaurant according to those specifications.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchised restaurant is damaged or destroyed by fire or other casualty, the franchisee must initiate all repairs or reconstruction to restore the restaurant to its original condition within thirty days. The franchisee is also expected to continue using their best efforts until the restoration is complete.
Checkersrallys also has the option to require the franchisee to repair or reconstruct the restaurant according to the brand's current layout and decor specifications for new restaurants if it is feasible and does not incur substantial additional costs. This means that while restoring the restaurant, Checkersrallys can impose its current design standards, potentially requiring the franchisee to invest more in the renovation to align with the latest brand image.
This requirement ensures that Checkersrallys restaurants maintain a consistent brand image and operational standard, even after unforeseen events like fire or natural disasters. For a prospective franchisee, this highlights the importance of having adequate insurance coverage to handle such events and the potential costs associated with meeting Checkersrallys's reconstruction standards. It also emphasizes the need to act swiftly to minimize disruption and maintain the brand's reputation.