Is a Checkers franchisee allowed to operate the restaurant or use the System at a location other than the approved Premises?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
2.01 Grant of Franchise. You have applied for a franchise to own and operate a Restaurant at a location we approve, which will be identified on Exhibit B (the "Premises"). Subject to the terms of this Agreement, we grant to you the right, and you assume the obligation, to operate a Restaurant at the Premises and to use the System solely in connection therewith, for a term of twenty (20) years, starting on the Effective Date (the "Term"). You may not conduct the business of the Franchised Restaurant or use the System at any site other than the Premises, or relocate the Franchised Restaurant, without our prior consent. The Franchised Restaurant may not be used for any purpose other than the operation of a Restaurant in compliance with this Agreement. You may conduct business only with customers at the Franchised Restaurant and may not engage in any catering or delivery businesses without or prior consent which may be withheld for any reason.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, franchisees are explicitly restricted from operating their restaurant or utilizing the Checkers system at any location other than the approved Premises without prior consent from Checkers. The approved location, or "Premises," is identified in Exhibit B of the franchise agreement.
This restriction is a standard practice in franchising, designed to maintain brand consistency and control over the customer experience. Checkers aims to ensure that its brand is represented uniformly across all locations and to manage market saturation effectively. Operating outside the approved location could lead to inconsistencies in service, quality, and brand image, which could negatively impact the entire franchise system.
Furthermore, the franchise agreement specifies that the franchised restaurant can only be used for operating a Checkers restaurant in compliance with the agreement. Franchisees are also restricted from engaging in catering or delivery businesses without prior consent from Checkers, which may be withheld for any reason. This provision gives Checkers broad authority to control how its brand is used and to prevent franchisees from deviating from the established business model.