Under what condition does Checkersrallys Franchisor have liability or obligation under the Lease?

According to Checkersrallys's 2025 Franchise Disclosure Document, the franchisor has no liability or obligation under the lease unless and until Checkersrallys exercises its right to assume the lease. This is explicitly stated in the franchise addendum to the lease agreement, which outlines the terms between the landlord, tenant (franchisee), and Checkersrallys.

This provision protects Checkersrallys from being automatically responsible for the franchisee's lease obligations. It maintains a clear boundary: Checkersrallys is only liable if they actively choose to step in and take over the lease. This clause is crucial for prospective franchisees to understand, as it clarifies that Checkersrallys's involvement in the lease is conditional and not an inherent responsibility.

For a prospective Checkersrallys franchisee, this means that the franchisor's liability is limited. The franchisee is primarily responsible for fulfilling the lease terms unless Checkersrallys decides to assume the lease, typically in situations where the franchisee defaults or the franchise agreement is terminated. This arrangement provides a level of security for Checkersrallys while placing the initial responsibility on the franchisee.