What is the maximum frequency that Checkersrallys can require a substantial remodel during the first five years of the Term?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You must periodically upgrade and/or remodel the Franchised Restaurant in accordance with our current prescribed plans, specifications and design model for new Restaurants (including, without limitation, any modifications or adjustments we authorize and timely introduce for similarly-situated Restaurants, or otherwise incorporate into the System for all franchisees), provided, however, we will not require substantial remodeling more than once during the first five (5) years of the Term, and in any case not more than once during the consecutive five (5)-year period immediately following any substantial upgrade or remodel we require you to make at any point during the Term (including during the first five (5) years). For purposes of this paragraph, by way of example only, if we require you to undertake a substantial upgrade or remodel of the Franchised Restaurant to be completed no later than December 31 during the second (2nd) year of the Term, then the next possible upgrade or remodel we could impose upon you would not be due any earlier than January 1 in
the seventh (7th) year of the Term. Any substantial remodeling you perform pursuant to this Section must be approved by us in advance as conforming with our current prescribed plans, specifications and design model for new Restaurants. If you fail to obtain our advance approval of any substantial remodeling, and such remodeling does not conform to our current prescribed plans, specifications and design model for new Restaurants, we reserve the right to require you to perform such additional remodeling as may be required to conform the Franchised Restaurant to our current prescribed plans, specifications and design model for new Restaurants.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys will not require substantial remodeling more than once during the first five years of the Term. Furthermore, Checkersrallys will not require substantial remodeling more than once during the consecutive five-year period immediately following any substantial upgrade or remodel they require the franchisee to make at any point during the Term, including during the first five years.
For example, if Checkersrallys requires a substantial upgrade or remodel to be completed by December 31 of the second year of the Term, the next possible upgrade or remodel Checkersrallys could impose would not be due any earlier than January 1 of the seventh year of the Term. Any substantial remodeling performed must be approved by Checkersrallys in advance and conform to their current prescribed plans, specifications, and design model for new Restaurants.
If a franchisee fails to obtain advance approval for any substantial remodeling, and the remodeling does not conform to Checkersrallys's current prescribed plans, specifications, and design model for new Restaurants, Checkersrallys reserves the right to require the franchisee to perform additional remodeling to conform the Franchised Restaurant to their current standards.