What is the nonrefundable extension fee that a Checkersrallys franchisee must pay to obtain an extension of time to locate an acceptable site?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
roposal. If we do not approve of a proposed site, you must identify and notify us of new sites until we approve a site for the Franchised Restaurant. Upon our approval of a site, we will insert its address into Exhibit B, and it will be the Premises. The failure to insert such address into in Exhibit B shall not automatically affect the enforceability of this Agreement. If, after expending good faith best efforts (as we determine in our sole judgment), you are unable to locate a site acceptable to us within the Designated Area for the Franchised Re
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee may need to request an extension of time to locate an acceptable site for their Franchised Restaurant. This can occur if, despite their best efforts, they cannot find a site that meets Checkersrallys's approval within the initially prescribed timeframe.
To obtain such an extension, Checkersrallys requires the franchisee to pay a nonrefundable extension fee. The amount of this fee is $5,000. This fee must be paid as a condition for Checkersrallys granting the extension.
This fee is nonrefundable, meaning that even if the franchisee is ultimately unable to secure a site or proceed with the franchise, the $5,000 will not be returned. Therefore, franchisees should carefully consider their ability to find a suitable location before requesting an extension and incurring this cost. It is also important to note that granting an extension is at Checkersrallys's sole discretion.