Does Checkersrallys have the right to approve the terms of any lease, sublease, or purchase contract for the premises?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
taurant within the prescribed time period under this Section, then you may request an extension of time to locate an acceptable site within the Designated Area, which we may grant to you in our sole discretion. If we grant you such an extension, you must pay us a nonrefundable extension fee of Five Thousand Dollars ($5,000) as a condition to our granting such extension.
3.03 Purchase or Lease of Premises.We have the right to approve the terms of any lease, sublease or purchase contract for the Premises. You agree to sign, and have the landlord sign, the franchise addendum to lease agreement attached hereto as Exhibit C, containing certain required terms and provisions of the lease or sublease. Within sixty (60) days after our approval of a site for the Premises, you must deliver to us a copy of the fully signed lease, sublease or purchase contract and the franchise addendum to lease agreement. You may not modify the terms of the lease, sublease, purchase contract or franchise addendum to lease agreement without our approval. Our approval of the lease, sublease or purchase contract does not constitute a warranty or representation of any kind, express or implied, as to its fairness or suitability or as to your ability to comply with its terms. We do not, by virtue of approving the lease, sublease or purchase contact, assume any liability or responsibility to you or to any third parties. If, after expending good faith best efforts (as we determine in our sole judgment), you are unable to execute the lease, sublease or purchase agreement for the Premises within the prescribed time period under this Section, and we d
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys retains the right to approve the terms of any lease, sublease, or purchase contract for the premises of a franchised restaurant. The franchisee is required to have the landlord sign a franchise addendum to the lease agreement, which is attached as an exhibit. Within 60 days of Checkersrallys's site approval, the franchisee must provide a copy of the fully signed lease, sublease, or purchase contract, along with the franchise addendum.
The franchisee cannot modify the terms of the lease, sublease, purchase contract, or franchise addendum without Checkersrallys's approval. However, Checkersrallys's approval of these documents does not constitute a warranty or representation regarding their fairness, suitability, or the franchisee's ability to comply with the terms. Checkersrallys does not assume any liability or responsibility to the franchisee or third parties through this approval.
If the franchisee, after making good faith efforts, cannot execute the lease, sublease, or purchase agreement within the specified time, they may request an extension. Granting an extension is at Checkersrallys's discretion, and if granted, the franchisee must pay a nonrefundable extension fee of $5,000. Failure to sign a lease, sublease, or purchase contract for the premises as required can result in Checkersrallys terminating the franchise agreement.