Does Checkers charge a fee for evaluating a proposed new brand or supplier, and if so, what does it cover?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If you propose to use any brand or supplier that is not then approved by us, you must first notify us and submit sufficient information, specifications and samples concerning such brand and/or supplier so that we can decide whether such brand complies with our specifications and standards and/or such supplier meets our approved supplier criteria. We have the right to charge reasonable fees to cover our costs (currently, we charge only our out of pocket expenses). We will notify you of our decision within a reasonable period of time not to exceed 60 days. We may prescribe procedures for the submission of requests for approval and impose obligations on suppliers, which we may require to be incorporated in a written agreement. We may impose limits on the number of suppliers and/or brands for any of the foregoing items and set required, optional or test menu items. We will make available our then current supplier criteria to you, as necessary, upon request if we are asked to evaluate and approve a new supplier, item, or service for use with the System. We may revoke our approval of any supplier by notifying the supplier and you in writing.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if a franchisee proposes to use a brand or supplier not already approved by Checkers, they must notify Checkers and provide sufficient information, specifications, and samples for evaluation. Checkers has the right to charge fees to cover their costs associated with this evaluation. Currently, Checkers only charges for out-of-pocket expenses.
The evaluation process involves Checkers determining whether the proposed brand complies with their specifications and standards, or whether the supplier meets their approved supplier criteria. Checkers will notify the franchisee of their decision within 60 days. They may also prescribe procedures for submitting approval requests and impose obligations on suppliers, potentially requiring written agreements.
Checkers may also limit the number of suppliers or brands for any items and set required, optional, or test menu items. The then-current supplier criteria will be made available to the franchisee upon request if Checkers is asked to evaluate and approve a new supplier, item, or service. Checkers retains the right to revoke approval of any supplier by notifying both the supplier and the franchisee in writing.
This policy ensures that Checkers maintains consistent quality and standards across all franchise locations by controlling the sources of products and services. Franchisees need to be aware of these restrictions and the potential costs associated with proposing new brands or suppliers.