What is a Checkers franchisee prohibited from using their Franchised Restaurant for, other than operating a Restaurant in compliance with the Franchise Agreement?

According to Checkers' 2025 Franchise Disclosure Document, a franchisee is prohibited from using their franchised restaurant for any purpose other than operating a restaurant in compliance with the Franchise Agreement. This means the franchisee must adhere strictly to the guidelines and standards set forth in the agreement for running the Checkers restaurant.

This restriction ensures that all Checkers restaurants maintain a consistent brand identity and operational standard. Franchisees cannot deviate from the approved business model, menu, or services without prior written consent from Checkers. This control allows Checkers to manage the quality and customer experience across all locations.

The Franchise Agreement also specifies that franchisees may only conduct business with customers at the Franchised Restaurant and may not engage in any catering or delivery operations without Checkers' approval, unless they meet specific requirements and participate in the optional Delivery Program. Furthermore, franchisees cannot offer any products or services, including promotional items, that have not been authorized by Checkers. This includes maintaining an inventory of approved food products, beverages, ingredients, and other products in sufficient quantity, quality, and variety to meet Checkers' standards.

In practical terms, a Checkers franchisee must obtain approval for any deviation from the standard restaurant operation. This includes any new menu items, promotional activities, or additional services. This requirement helps Checkers maintain uniformity and protect its brand image, but it also limits the franchisee's autonomy in responding to local market demands or customer preferences without corporate approval.