Is Checkers allowed to operate restaurants under trademarks other than the Checkers name and mark?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) establish and operate, and grant to others the right to operate, restaurants identified by trademarks, service marks or trade dress, other than the Marks (including the Checkers or Rally's, as is applicable, name and mark), under terms and conditions we deem appropriate and wherever such restaurants are located;
Source: Item 12 — TERRITORY (FDD pages 57–61)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, Checkers retains the right to operate restaurants under different trademarks, service marks, or trade dress, meaning they are not restricted to only using the Checkers name and mark. This latitude extends to granting others the right to operate restaurants under these alternative brands as well. This condition applies regardless of where these restaurants are located and under terms and conditions that Checkers deems appropriate.
For a prospective franchisee, this means that Checkers could potentially introduce or operate other restaurant brands that may compete with their Checkers franchise. While Checkers states an intent to maintain separate brand names for Checkers and Rally's, they also mention integrating aspects of both concepts, including offering similar menu items and using a common restaurant design. This integration and the possibility of operating other brands could create internal competition or brand confusion within the market.
Furthermore, Checkers reserves the right to sell products or services under the Checkers marks or other trademarks through alternative channels of distribution, such as the internet or supermarkets. This could also introduce competition for franchisees, as these alternative channels may draw customers away from the traditional brick-and-mortar Checkers restaurants. Franchisees should consider how these potential competitive scenarios could impact their restaurant's performance and profitability.
It is important for potential franchisees to understand that Checkers retains significant discretion over its trademarks and restaurant operations. This includes the right to operate competing brands and utilize alternative distribution channels. Prospective franchisees should carefully evaluate the potential impact of these factors on their investment and discuss any concerns with Checkers before entering into a franchise agreement.