Can a Checkers franchisee engage in catering or delivery operations without Checkers' approval?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
n or after your death or the death of any of your Owners by will, disclaimer of the laws of intestate succession or otherwise; or (5) any foreclosure upon your Franchised Restaurant or the transfer, surrender or loss by you or your Owners of possession, control or management of your Franchised Restaurant.
2. GRANT OF RIGHTS.
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.
2.02 Your Protected Area.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 65–66)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, franchisees are restricted from engaging in catering or delivery businesses without prior consent from Checkers. Specifically, the FDD states that franchisees may only conduct business with customers at the franchised restaurant location unless they obtain approval from Checkers to engage in catering or delivery operations. This approval may be withheld for any reason. However, franchisees may be allowed to offer certain delivered products for delivery if they meet Checkers' requirements and elect to participate in their optional Delivery Program.
This restriction is significant for prospective franchisees as it limits their ability to expand their services beyond the physical restaurant location without explicit permission. It ensures that Checkers maintains control over how its brand is represented and how its products are distributed. Franchisees need to factor in this limitation when projecting potential revenue streams and business growth.
For franchisees interested in offering delivery services, participation in Checkers' optional Delivery Program is a potential avenue, provided they meet the franchisor's requirements. This program allows franchisees to tap into the growing demand for food delivery while adhering to Checkers' standards and guidelines. Franchisees should inquire about the specific requirements and costs associated with participating in the Delivery Program to determine its feasibility for their business.
Overall, the clause underscores the importance of adhering to the franchise agreement and seeking approval for any business activities outside the standard restaurant operations. It is crucial for prospective franchisees to discuss these restrictions with Checkers during their due diligence process to fully understand the scope of their operational freedom and the potential for additional revenue streams through catering or delivery services.