Under what conditions can Checkersrallys refuse to renew a franchise on terms generally available to other franchisees?

According to Checkersrallys's 2025 Franchise Disclosure Document, a provision that allows Checkersrallys to refuse renewal of a franchise on terms generally available to other franchisees of the same class or type under similar circumstances is not permitted. This means Checkersrallys cannot discriminate against a franchisee during renewal if other franchisees in similar situations are offered renewal. However, the FDD clarifies that this section does not require a renewal provision at all, meaning Checkersrallys is not obligated to offer renewals in the first place.

This clause protects franchisees from unfair or discriminatory practices by Checkersrallys during the renewal process. If Checkersrallys offers renewals to some franchisees, it generally must offer them to all franchisees in similar circumstances on similar terms. This ensures a level playing field and prevents Checkersrallys from selectively denying renewals based on arbitrary or unfair reasons.

However, it's important to note that Checkersrallys retains the right not to offer any renewal at all. The clause simply states that if renewals are offered, they must be offered equitably. A prospective franchisee should clarify with Checkersrallys the specific conditions under which renewals are typically granted or denied, and what factors are considered in the renewal decision-making process.