Under what condition can a Checkersrallys franchisee request an extension of time to locate an acceptable site?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
roposal. If we do not approve of a proposed site, you must identify and notify us of new sites until we approve a site for the Franchised Restaurant. Upon our approval of a site, we will insert its address into Exhibit B, and it will be the Premises. The failure to insert such address into in Exhibit B shall not automatically affect the enforceability of this Agreement. If, after expending good faith best efforts (as we determine in our sole judgment), you are unable to locate a site acceptable to us within the Designated Area for the Franchised Re
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee may request an extension of time to locate an acceptable site within the designated area if, after expending good faith best efforts (as determined by Checkersrallys), they are unable to do so within the initially prescribed time period.
However, Checkersrallys has sole discretion over whether to grant this extension. If Checkersrallys grants an extension, the franchisee must pay a nonrefundable extension fee of $5,000 as a condition of receiving the extension.
This clause highlights the importance of thorough site selection and the potential costs associated with delays. Prospective Checkersrallys franchisees should carefully consider the time and effort required to find an acceptable site and factor in the possibility of needing an extension, along with the associated fee. It also emphasizes that Checkersrallys ultimately controls the site selection process and any extensions granted.