Can Checkers establish and operate restaurants at Non-Traditional Sites within a franchisee's Protected Area?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) establish and operate, and grant to others the right to operate, Restaurants, or other restaurants using any part or all of the System and/or Marks, that are located at or operated from Non-Traditional Sites within or outside the Protected Area;
- (c) sell any products or services under the Marks or under any other trademarks, service marks or trade dress, through alternative channels of distribution, wherever located or operating (including the internet or similar electronic media and supermarkets);
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 establish and operate restaurants, including those at Non-Traditional Sites, within or outside a franchisee's Protected Area. This means that even if a franchisee has a Protected Area, Checkers can still open or allow others to open Checkers restaurants at Non-Traditional Sites within that area.
This is a significant consideration for prospective franchisees as it limits the exclusivity of their Protected Area. The FDD defines Non-Traditional Sites as locations such as airports, universities, and stadiums, which often have high foot traffic. The ability of Checkers to establish restaurants in these locations within a franchisee's Protected Area could directly impact the franchisee's potential customer base and revenue.
Furthermore, Checkers also retains the right to sell products or services under the Checkers trademarks through alternative channels of distribution, such as the internet or supermarkets, regardless of location. This broad reservation of rights underscores that a Checkers franchisee's Protected Area offers limited protection against competition from the franchisor itself and other channels it may utilize.
Prospective franchisees should carefully consider the implications of these rights retained by Checkers and how they might affect the potential profitability of their franchise. It would be prudent to discuss with Checkers the company's plans for Non-Traditional Sites and alternative distribution channels in the franchisee's target market to better understand the potential competitive landscape.