factual

Can a Checkers franchisee relocate their Franchised Restaurant without prior written consent?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

The Franchise Agreement grants you the right to own and operate a Restaurant at a specific location. If we and you have not agreed upon an approved location for the Franchised Restaurant before signing the Franchise Agreement, then you must locate a suitable site within the Designated Area. The Designated Area is appointed for the sole purpose of site selection and does not confer any territorial exclusivity or protection to you. You may not conduct the business of your Franchised Restaurant at any site other than the Premises, or relocate your Franchised Restaurant, without our prior written consent. In deciding whether to consent to a relocation, we may consider such factors as we, in our sole discretion, deem appropriate, including the general location and neighborhood, demographic information, traffic patterns, access, visibility, location of other restaurants and food establishments (including other Restaurants) and size, condition, configuration, appearance and other physical characteristics of the site. The Franchise Agreement does not provide you with any options, rights of first refusal or similar rights to acquire additional franchises.

Source: Item 12 — TERRITORY (FDD pages 57–61)

What This Means (2025 FDD)

According to Checkers's 2025 Franchise Disclosure Document, a franchisee cannot relocate their restaurant without prior written consent from Checkers. The Franchise Agreement grants the franchisee the right to operate at a specific location, and any deviation from this requires approval from Checkers.

When evaluating a relocation request, Checkers may consider various factors. These include the general location and neighborhood, demographic information, traffic patterns, accessibility, visibility, the proximity of other restaurants (including other Checkers locations), and the physical characteristics of the new site, such as its size, condition, configuration, and appearance. This allows Checkers to ensure that the relocation is strategically sound and aligns with the brand's overall interests.

The need for written consent before relocation is a standard practice in franchising, allowing franchisors to maintain brand consistency and protect the network from potentially damaging location choices. A Checkers franchisee should carefully consider the initial site selection and business terms, as relocation is not guaranteed and depends on Checkers's approval based on their assessment of the proposed new location.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.