Is a Checkers franchisee permitted to use the Franchised Restaurant for purposes other than operating a Checkers restaurant?
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 c
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, a franchisee is explicitly restricted to using the franchised restaurant solely for the operation of a Checkers restaurant. The agreement specifies that the franchisee must operate the restaurant at the approved premises and use the Checkers system in connection with that operation.
This restriction means a Checkers franchisee cannot use the restaurant's physical location or the Checkers system for any other business ventures without prior consent from Checkers. This includes activities like running a different type of food service, retail operation, or any other non-approved business from the same location.
The franchise agreement emphasizes that operating a Checkers restaurant requires compliance with the agreement's terms. Any deviation from this, such as using the premises for unauthorized purposes, would be a breach of contract and could lead to penalties or termination of the franchise agreement. Additionally, franchisees are restricted from engaging in catering or delivery services without explicit consent from Checkers, further limiting the scope of operations to on-site customer service.