According to the Checkers agreement, what does the term 'Franchised Restaurant' refer to?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
2.01 Grant of Franchise. You have applied for a franchise to own and operate a Restaurant at a location we approve, which will be identified on Exhibit B (the "Premises"). Subject to the terms of this Agreement, we grant to you the right, and you assume the obligation, to operate a Restaurant at the Premises and to use the System solely in connection therewith, for a term of twenty (20) years, starting on the Effective Date (the "Term"). You may not conduct the business of the Franchised Restaurant or use the System at any site other than the Premises, or relocate the Franchised Restaurant, without our prior consent. The Franchised Restaurant may not be used for any purpose other than the operation of a Restaurant in compliance with this Agreement. You may conduct business only with customers at the Franchised Restaurant and may not engage in any catering or delivery businesses without or prior consent which may be withheld for any reason.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the 'Franchised Restaurant' refers to a Checkers restaurant operating under the terms of the franchise agreement. Specifically, it is the restaurant that the franchisee is authorized to operate at a location approved by Checkers, as indicated on Exhibit B of the franchise agreement, also known as the 'Premises'.
The agreement grants the franchisee the right and obligation to operate the restaurant at the specified premises and to use the Checkers system in connection with that location. The franchisee is restricted from conducting the business or using the system at any other site or relocating the restaurant without prior consent from Checkers. Furthermore, the Franchised Restaurant can only be used for the operation of a Checkers restaurant in compliance with the franchise agreement.
This definition is important because it clearly defines the scope and limitations of the franchise rights granted to the franchisee. It ensures that the franchisee understands where they are authorized to operate and how they must conduct their business. It also protects Checkers' brand and system by preventing franchisees from operating outside the approved location or using the system for unauthorized purposes. The franchisee is further restricted to conducting business only with customers at the Franchised Restaurant and may not engage in catering or delivery businesses without prior consent from Checkers.