What is the maximum cure period Checkersrallys must provide to a franchisee before terminating the agreement for failing to comply with its terms?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) if you or any of your Owners or Affiliates fail to comply with any other provision of this Agreement and do not correct such failure within 30 days after written notice of such failure to comply is delivered to you;
(c) A provision that permits a franchisor to terminate a franchise prior to the expiration of its term except for good cause. Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
"With respect to franchises governed by Minnesota law, the franchisor will comply with Minn. Stat. Sec. 80C.,14 Subds. 3, 4, and 5 which require, except in certain specified cases, that a franchisee be given 90 days notice of termination (with 60 days to cure) and 180 days notice for non-renewal of the franchise agreement."
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, the maximum cure period the company needs to provide a franchisee before terminating the agreement for failure to comply with its terms is generally 30 days. Specifically, if a franchisee fails to comply with any provision of the agreement, Checkersrallys must provide written notice of the failure and allow the franchisee 30 days to correct it.
However, this 30-day cure period may not apply in all situations. The FDD states that this cure period is not required in certain unspecified cases for franchises governed by Minnesota law, which requires 90 days notice of termination with 60 days to cure.
Furthermore, the FDD includes an addendum for Maryland franchisees stating that any general releases signed will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. It also states that any limitation on the period of time arbitration and/or litigation claims must be brought shall not act to reduce the 3 year statute of limitations afforded a franchisee for bringing a claim arising under the Maryland Franchise Registration and Disclosure Law. Therefore, prospective franchisees should carefully review the termination provisions within the franchise agreement, paying close attention to any state-specific addenda that may modify these terms.