After termination or expiration of the franchise agreement, how long does a Checkersrallys franchisee have to pay all outstanding royalties, NPF contributions, and other amounts owed to Checkersrallys and its affiliates?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
16.01 Payment of Amounts Owed to Us.
Within thirty (30) days after the effective date of termination or expiration (without renewal) of this Agreement, you must pay us and our Affiliates all royalties, NPF contributions, amounts owed for purchases from us or our Affiliates, interest due on any of the foregoing and all other amounts owed to us or our Affiliates which are then unpaid.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee has 30 days to pay all outstanding amounts after the termination or expiration of the franchise agreement. Specifically, this includes all royalties, National Promotion Fund (NPF) contributions, amounts owed for purchases from Checkersrallys or its affiliates, any interest due, and all other unpaid amounts owed to Checkersrallys or its affiliates.
This requirement ensures that Checkersrallys receives all outstanding payments promptly after the franchise agreement ends. For a prospective franchisee, this means they need to be prepared to settle all financial obligations with Checkersrallys within this 30-day period. Failure to do so could result in additional penalties or legal actions from Checkersrallys to recover the debt.
It is important for franchisees to maintain accurate financial records and ensure timely payments throughout the term of the agreement to avoid accumulating a large outstanding balance at the time of termination or expiration. Understanding this obligation is crucial for managing finances and planning for the end of the franchise term.