What is the required action for Checkersrallys franchisees regarding substantial remodeling plans?
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, franchisees must periodically upgrade or remodel their franchised restaurant according to Checkersrallys's current plans, specifications, and design model for new restaurants. These upgrades may include modifications or adjustments that Checkersrallys authorizes and introduces for similar restaurants or incorporates into the system for all franchisees. However, Checkersrallys will not require substantial remodeling more than once during the first five years of the franchise term, and not more than once during each consecutive five-year period following any substantial upgrade or remodel.
For any substantial remodeling, franchisees must obtain advance approval from Checkersrallys to ensure the remodeling conforms to the current prescribed plans, specifications, and design model for new restaurants. If a franchisee fails to obtain advance approval and the remodeling does not meet Checkersrallys's standards, Checkersrallys reserves the right to require additional remodeling to bring the restaurant into compliance with their current standards.
This requirement ensures that all Checkersrallys restaurants maintain a consistent brand image and meet current customer expectations. Franchisees need to factor in the potential costs and time associated with these periodic remodels when evaluating the franchise opportunity. The obligation to obtain advance approval underscores the importance of maintaining open communication with Checkersrallys and adhering to their established guidelines to avoid potential conflicts and additional expenses.