Does Checkersrallys have the right to approve the terms of any lease, sublease, or purchase contract for the premises of a Checkersrallys Franchised Restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to approve the terms of any lease, sublease or purchase contract for the Premises of your Franchised Restaurant. Any lease or sublease for the Premises must contain certain provisions detailed in our required form of franchise addendum to lease agreement (the "Lease Addendum"), the current form of which we include as an exhibit attached to the Franchise Agreement.
If we agree to sublease the Premises to you, you are required to pay the rent under the sublease to the landlord of the Premises, along with the related occupancy costs, which include property taxes, insurance, maintenance and structural repairs. We derive revenue from this subleasing arrangement, as detailed in Item 6.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Checkersrallys' 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 lease or sublease must include specific provisions detailed in Checkersrallys' required form of franchise addendum to lease agreement, which is included as an exhibit to the Franchise Agreement.
If Checkersrallys agrees to sublease the premises to the franchisee, the franchisee is required to pay rent and related occupancy costs, including property taxes, insurance, maintenance, and structural repairs, directly to the landlord. Checkersrallys derives revenue from this subleasing arrangement, as detailed in Item 6 of the FDD.
This provision is fairly standard in franchising, as it allows Checkersrallys to maintain control over the locations of its franchises and ensure that the terms of the lease or purchase agreement are favorable and protect the brand's interests. Prospective franchisees should carefully review the Lease Addendum and understand all of their obligations related to the premises, including rent, occupancy costs, and any other requirements imposed by Checkersrallys.