Does Checkers allow company-owned or franchised Checkers Restaurants and Rally's Restaurants to compete with my Checkers Franchised Restaurant?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ected Area is not dependent on achieving certain sales volume, market penetration or any other contingency.
Competing Businesses
Company-owned and/or franchised Checkers Restaurants and Rally's Restaurants may compete with your Franchised Restaurant generally, although we do not currently intend to establish or franchise Checkers Restaurants in any Rally's franchisee's general market area, or Rally's Restaurants in any Checkers franchisee's general market area. Consequently, we do not anticipate any conflict(s) between the 2 systems. We intend to resolve any potential conflicts that may arise between a Checkers Restaurant and a Rally's Restaurant on a case-by-case basis.
We have integrated and will continue to integrate aspects of the Checkers and Rally's concepts. Although we intend to maintain separate brand names, outlets of both brands offer many of the same menu items and use a common restaurant design we have developed for both systems.
We have entered into agreements with independent third party food manufacturers and suppliers to produce, offer and sell certain food products to be distributed under the Marks in supermarkets, club stores, grocery stores, vending racks, and other retail outlets that may be located within the general market area of your Franchised Restaurant.
Source: Item 12 — TERRITORY (FDD pages 57–61)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, company-owned and franchised Checkers and Rally's restaurants may compete with a franchisee's Checkers restaurant. While Checkers states they do not currently intend to establish or franchise Checkers restaurants in a Rally's franchisee's general market area, or vice versa, this is not a guarantee. Checkers intends to resolve potential conflicts between Checkers and Rally's restaurants on a case-by-case basis. This means that a Checkers franchisee could face direct competition from another Checkers or Rally's location, even if it's owned by the company or another franchisee.
Checkers also retains the right to sell products under the Checkers brand (or other trademarks) through alternative channels of distribution like supermarkets, which may be located within the franchisee's general market area. This could further impact a franchisee's sales, as customers might opt to purchase Checkers-branded products from these alternative channels instead of visiting the restaurant.
Furthermore, Checkers does not provide exclusivity in Delivery Areas if a franchisee participates in their optional Delivery Program. Checkers, other franchisees, and/or Delivery Service Providers (DSPs) may provide delivery or catering services from other Checkers and/or Rally's restaurants and advertise under the Marks within and outside of the Delivery Areas, even within a franchisee's Protected Area. This means that even with a Protected Area, a franchisee could still face competition from other Checkers or Rally's restaurants through delivery services.
Prospective franchisees should carefully consider the potential for competition from both within the Checkers/Rally's system and from alternative distribution channels before investing in a franchise. It would be prudent to discuss these competitive factors with Checkers and existing franchisees to fully understand the potential impact on their business.