What are the requirements for Checkersrallys franchisees to upgrade or remodel their Franchised Restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
to initiate and thereafter continue in good faith and with due diligence a bona fide program to complete such required maintenance, we have the right (in addition to our rights under Section 14), but not the obligation, to enter the Premises and do such maintenance on your behalf and at your expense. You must promptly reimburse us for such expenses, which we may automatically debit from your bank account in accordance with Section 6.05.
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.
If the Franchised Restaurant is damaged or destroyed by fire or other casualty, then you must initiate within thirty (30) days (and continue using best efforts until completion) all repairs or reconstruction to restore the Franchised Restaurant to its original condition. If, in our reasonable judgment, the damage or destruction is of such a nature that it is feasible, without incurring substantial additional costs, to repair or reconstruct the Franchised Restaurant in accordance with our then current layout and decor specifications for new Restaurants, we may require you to repair or reconstruct the Franchised Restaurant according to those specifications.
You may not make any alterations to the Franchised Restaurant, nor any replacements, relocations or alterations of fixtures, equipment, furniture or signs, without our prior approval. We have the right at your expense to rectify (including reversing) any replacements, relocations or alterations not previously approved by us.
9.02 Uniform Image.You agree that the Franchised Restaurant will offer for sale food, beverages and other products and services that we determine at any time and from time to time to be appropriate for the Franchised Restaurant. We may designate menu items as being required or optional and also may introduce test menu items on a required or optional basis. You further agree that the Franchised Restaurant will not, without our approval, offer any products or services (including promotional items) not then authorized by us. You agree that the Franchised Restaurant will offer courteous and efficient service and a pleasant ambiance.
9.03 Suppliers, Products and Services.You acknowledge that the reputation and goodwill of Restaurants is based on, and can be maintained only by, the sale of distinctive high quality products and services.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees are required to periodically upgrade or remodel their restaurants according to Checkersrallys's current plans, specifications, and design model for new restaurants. These upgrades may include modifications or adjustments that Checkersrallys 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 subsequent five-year period after any substantial upgrade or remodel.
For example, if Checkersrallys requires a substantial upgrade to be completed by December 31 of the second year of the term, the next possible upgrade cannot be required earlier than January 1 of the seventh year. Franchisees must obtain advance approval from Checkersrallys for any substantial remodeling to ensure it conforms to the current prescribed plans and design model. Failure to obtain approval or to conform to the required standards may result in Checkersrallys requiring additional remodeling at the franchisee's expense.
In addition to periodic upgrades, franchisees must maintain the restaurant's condition and appearance in an attractive and clean manner. This includes making modifications and additions to the layout, decor, and general theme as required by Checkersrallys, such as replacing worn-out fixtures, equipment, furniture, signs, and utensils, as well as repairing the interior, exterior, drive-thru, and parking areas. Periodic cleaning and redecorating of the premises are also required. If the restaurant's condition does not meet Checkersrallys's standards, the franchisee will be notified and given ten days to initiate a program to correct the deficiencies. Failure to do so may result in Checkersrallys performing the maintenance at the franchisee's expense, which can be automatically debited from the franchisee's bank account.
If a Checkersrallys restaurant is damaged or destroyed by fire or other casualty, the franchisee must begin repairs or reconstruction within 30 days to restore it to its original condition. Checkersrallys may require the franchisee to repair or reconstruct the restaurant according to the then-current layout and decor specifications for new restaurants if it is feasible without incurring substantial additional costs.