Does Checkersrallys have any obligation to extend the dates or timelines in the Development Schedule under any circumstances?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
2.03 Development Obligations. You agree to exert your best efforts to fully develop the market potential for Restaurants in the Development Area. Without limiting the foregoing, you agree to open and operate in the Development Area, in accordance with and pursuant to Franchise Agreements, those cumulative numbers of Restaurants set forth in Section 3(a) of Exhibit A by the corresponding dates set forth therein and to achieve those cumulative numbers in accordance with the timelines set forth in Section 3(b) of Exhibit A (those dates and timelines collectively referred to herein as the "Development Schedule"). Time is of the essence in this Agreement, and we have no obligation under any circumstances to extend any of the dates or timelines in the Development Schedule.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys has no obligation to extend the dates or timelines in the Development Schedule under any circumstances. As a Checkersrallys franchisee, you agree to exert your best efforts to fully develop the market potential for Restaurants in the Development Area. You must open and operate the cumulative numbers of Restaurants set forth in Section 3(a) of Exhibit A by the corresponding dates set forth therein and to achieve those cumulative numbers in accordance with the timelines set forth in Section 3(b) of Exhibit A. Time is of the essence in the agreement.
Failure to meet any part of the Development Schedule gives Checkersrallys the right to terminate the agreement, effective upon delivery of termination notice. If you fail to meet any of the timelines listed in the chart of Section 3(b), the initial franchise fee for that particular Restaurant as well as all subsequent Restaurants to be developed will automatically readjust to the standard amount of $30,000, regardless of the initial franchise fee amount listed in the Section 3(b) chart.
These strict requirements underscore the importance of careful planning and resource allocation for prospective Checkersrallys franchisees. The Development Schedule is a critical component of the agreement, and franchisees must be prepared to meet its demands or risk financial penalties or termination of the agreement. Prospective franchisees should carefully review Exhibit A of the Franchise Agreement to fully understand the Development Schedule and its implications.