Can a Checkers franchisee use their Franchised Restaurant for any purpose other than the operation of a Restaurant in compliance with the Franchise Agreement?
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 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 65–66)
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.
Specifically, the franchise agreement grants the franchisee the right and obligation to operate a restaurant at an approved location (the Premises) and to use the Checkers system only in connection with that operation. The FDD states that franchisees cannot conduct the business of the Franchised Restaurant or use the system at any site other than the Premises without prior consent from Checkers.
This means a Checkers franchisee cannot use the restaurant for any other business ventures or purposes outside of the standard Checkers operation without obtaining explicit permission from Checkers. Furthermore, franchisees are restricted from engaging in catering or delivery services without prior consent from Checkers, which Checkers may withhold for any reason. This ensures that the restaurant is operated according to the franchise agreement and maintains the brand's standards.