Can Checkers establish and operate restaurants identified by trademarks other than the Checkers or Rally's name?

According to Checkers' 2025 Franchise Disclosure Document, Checkers retains the right to establish and operate restaurants under trademarks other than the Checkers or Rally's names. This means that Checkers has the discretion to operate or franchise restaurants with different branding, potentially even in the same areas as existing Checkers or Rally's franchises.

This right extends to granting others the ability to operate restaurants identified by different trademarks, service marks, or trade dress, under terms and conditions that Checkers deems appropriate. This clause provides Checkers with significant flexibility in expanding its business and exploring different market segments without being restricted to the Checkers and Rally's brands alone.

For a prospective franchisee, this indicates that Checkers could introduce new restaurant concepts or acquire existing ones that compete with their Checkers or Rally's franchise. While Checkers states they do not currently intend to establish Checkers restaurants in a Rally's franchisee's market area or vice versa, this policy could change. The franchisee's agreement offers no protection against Checkers operating or franchising other brands within their territory. This is a crucial point for potential franchisees to consider, as it highlights the potential for increased competition from Checkers itself through different brands.